In this article we will discuss about the return and risk on single asset. Return on Single Asset: The typical object of investment is to make current income from investments in the form of dividends and interest income. The investments should earn reasonable and expected rate of return on investments. Certain investments like bank deposits, public deposits, debentures, bonds etc. [...]
Learn how to calculate risk and return on portfolio of securities in a firm. Return on Portfolio: The expected return from a portfolio of two or more securities is equal to the weighted average of the expected returns from the individual securities. Σ(RP) = WA(RA) + WB(RB) Where, Σ(Rp) = Expected return from a portfolio of two securities WA = [...]
The following article will guide to learn how to calculate annuity of cash flows in a company. An annuity is a cash flow, either income or outgoings, involving the same sum in each period. An annuity is the payment or receipt of equal cash flows per period for a specified amount of time. For example, when a company set aside [...]