To determine the rate of return, (W) = change in X, t= at time t, the formula would be %W = ((X*t)-(X*t)-1) divided by (X*t)-1. The return on investment (ROI) must first be determined to solve this formula. The ROI is de... More »

Use the capital asset pricing model to calculate the required rate of return for a stock, as Investopedia explains. Estimate a risk-free rate, determine the stock's market return, and research the stock's beta or calcula... More »

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The formula to calculate return on investment is ROI = (gain from investment - cost of investment) / cost of investment. The subsequent result is expressed as a ratio or a percentage. More »

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The Sharpe Ratio formula is the expected portfolio return minus the risk-free rate, divided by the standard deviation of portfolio returns. It provides the investor with an idea of how much additional return is received ... More »

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Benefits of annuities include that they accrue tax-free and often come with death benefits, which means that should an investor die before cashing annuities out, an heir will receive the funds; drawbacks include fees, lo... More »

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An appropriate rate of return on an investment is dependent on an individual's risk tolerance, with investments with more variable performance generally expected to provide higher rates of return, according to Investoped... More »

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The average return rate for the S&P 500 from 2010 to 2014 was 15.81 percent, or 13.92 percent when factoring in account inflation. The S&P 500 is an index of the top 500 large capital firms publicly traded. More »

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