One of the many metrics that investors use when evaluating a company is return on assets. The greater the return a company can achieve using a given amount of capital, the higher the valuation that ...

Q. I have prepared projections for a proposed project, and I want to calculate the internal rate of return. Instead of using Excel’s IRR function, should I use simple math formulas so others can ...

If an investment adviser touts an impressive average rate of return, be very wary, because losses can “hide” among the gains and hinder your financial success. Let’s explore the meaning of average ...

Given the decades-long market upswing followed by the recent downturn, you may have questions about if your money is really working for you. For instance, is it possible to make an average 25% rate of ...

What Is the Rule of 72 in Finance? For investors, the rule of 72 can be a helpful tool that provides an idea of how long it will take for an investment to double in value, if the annual rate of return ...

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...

Real rate of return adjusts for inflation, providing a true growth measure. S&P 500's real rate is 7.9%, versus a nominal 11.8%, due to inflation. Using real rates in retirement planning ensures ...

The rule of 72 is a shortcut investors can use to determine how long it will take their investment to double based on a fixed annual rate of return. To use the rule of 72, divide 72 by the fixed rate ...

When we put our money in the market, or before we even do, one of the biggest questions we have is: How long will it take for this investment to really grow? Luckily, there's a mathematical shortcut ...