Return on investment is the amount of profit on the invested money after deducting taxes, safety of investment is the risk factor involved in the investment. Such as risk is high safety of investment is less.
Return on Investment:
Safety of Investment
The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.
Bond investing is a very safe investment. Due to its safety the percentage of return is not high.
The two main parameters are: * Returns - Amount of returns we can expect on the investment * Safety/Risk - How risky the investment is. Generally risk and returns are directly proportional. Higher the risk on investment, higher would be the return on investment.
Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.
Return On Investment
Return on investment is the amount that you get back for investing in something. The formula is ROI=(Profit *100)/(Investment * number of years.)
What factors affect the rate of return of an investment at maturity?
Yes the amount would be a taxable income amount after your return of investment amounts exceed your cost basis in the investment.
An investment.
Hurdle rate
You can use a specialized tool called a "return on investment calculator." One of these special tools can be found here: http://www.money-zine.com/Calculators/Investment-Calculators/Return-on-Investment-Calculator/ It takes the amount of the original investment, the future value of the investment, and the time elapsed into account.
Definition of 'Return On Investment - ROI'A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. The return on investment formula: