Category: investments

  • Expected return calculator and formula

    Expected return calculator and formula

    When evaluating an asset’s past performance, we can make use of the historical (or realized) average return. In that sense, the historical average return is a backward-looking measure. But, in order to forecast an asset’s future performance, we need a forward-looking measure. This measure is called the expected return. In this post, we explain the […]

  • Holding period return calculator and formula

    Holding period return calculator and formula

    In this post, we explain the holding period return formula with examples and offer an easy-to-use holding period return calculator. When investors buy securities (e.g., stocks), they may hold them for months or years before selling them. The duration during which an investor holds on to a particular security is known as the holding period […]

  • Real return vs nominal return

    Real return vs nominal return

    Real return vs nominal return: How do they differ from one another? Suppose that an asset yields a return of 50% over a year. So, if you invest $10,000 today, your investment grows to $15,000 by the end of the year. Sounds not too bad, right? But, imagine that the inflation rate over the course […]

  • Return calculations in 3 easy steps

    Return calculations in 3 easy steps

    Investing is all about realizing a positive return. But, how do you calculate returns? In this post, we discuss the fundamentals of return calculations. We begin by explaining why investors are interested in calculating returns. Then, we teach you how to calculate gross returns and net returns. We discuss the concept of total return as […]