investment strategy
- Finance
Investment Equation
Investment Equation There isn’t a single universal “investment equation” that applies to all situations. However, there are a couple of key metrics used to evaluate investments and some formulas that can be helpful. Here’s a breakdown: Return on Investment (ROI): This is a common metric to gauge the profitability of an investment. ROI Formula: ROI = (Net Return / Investment Cost) * 100 (expressed as a percentage) Net Return = Selling Price – Purchase Price + Income from Investment…
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Investment Expenses
Investment Expenses Investment expenses are the costs associated with buying, holding, and selling investments. They can eat into your returns, so it’s important to be aware of them and factor them into your investment decisions. There are two main types of investment expenses: Transaction fees: These are the fees you pay to buy and sell investments, such as commissions, spreads, and ticket charges. Management fees: These are the fees you pay to investment professionals to manage your portfolio. These can include annual…
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