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Relation between a rate of return and a return over a period of time ( reinvested)

In finance, return is a profit on an investment. It comprises any change in value, and interest or dividends or other such cash flows which the investor ... more

Logarithmic rate of return

In finance, return is a profit on an investment. It comprises any change in value, and interest or dividends or other such cash flows which the investor ... more

Logarithmic compounded return ( force of interest)

In finance, return is a profit on an investment. It comprises any change in value, and interest or dividends or other such cash flows which the investor ... more

Annualized volatility

In finance, volatility is a measure for variation of price of a financial instrument over time. return is a profit on an investment. It comprises any ... more

Generalized volatility for time T

In finance, volatility is a measure for variation of price of a financial instrument over time. An implied volatility is derived from the market price of a ... more

Arithmetic Mean Return

Compound annual growth rate is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the ... more

Annualizing the holding period return

In finance, holding period return (HPR) is the total return on an asset or portfolio over the period during which it was held. It ... more

Compound annual growth rate

Compound annual growth rate is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the ... more

Discounting

Discounting is a financial mechanism in which a debtor obtains the right to delay payments to a creditor, for a defined period of time, in exchange for a ... more

Return over a single period

In finance, return is a profit on an investment. return is also used to refer to a profit on an investment, expressed as a proportion of the amount ... more

Time period needed to double money

The present value formula can be rearranged logarithmic way to calculate how many years are needed for the value of the deposit to double. ( For the period ... more

Total shareholder return

Total Shareholder Return (TSR) (or simply Total Return) is a measure of the performance of different companies’ stocks and shares ... more

Compound interest

Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of ... more

Present value of a perpetuity (Present Value of Int Factor Annuity)

A perpetuity is payments of a set amount of money that occur on a routine basis and continues forever. Present value of a perpetuity is an infinite and ... more

Sortino ratio

The Sortino ratio measures the risk-adjusted return of an investment asset, portfolio, or strategy. It is a modification of the Sharpe ratio but penalizes ... more

Security market line (SML)

Security market line (SML) is the representation of the capital asset pricing model. It displays the expected rate of return of ... more

Holding period return

In finance, holding period return (HPR) is the total return on an asset or portfolio over the period during which it was held. It ... more

Sharpe ratio

In finance, the Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) is a way to examine the performance ... more

Cost of equity

The cost of capital is a term used in the field of financial investment to refer to the cost of a company’s funds (both debt and equity). Equity is ... more

Security characteristic line

Security characteristic line (SCL) is a regression line, plotting performance of a particular security or portfolio against that ... more

Rule of 72 (estimating an investment's doubling time)

Rule of 72 is a method for estimating an investment’s doubling time. The rule number 72 is divided by the interest percentage per period to obtain ... more

Periodic compounding

Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of ... more

Exact doubling time for an interest rate

For periodic compounding, the exact doubling time for an interest rate of r per period is a logarithmic formula, that can be used if we want to know the ... more

Capital market line (CML)

Capital market line (CML) is the tangent line drawn from the point of the risk-free asset to the feasible region for risky ... more

Active return

In finance, active return refers to that segment of the returns in an investment portfolio that is due to active management decisions made by the portfolio ... more

Beta (financial elasticity)

In finance, the beta (β) of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors. ... more

Effective interest rate

The effective interest rate, effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the ... more

Capital asset pricing model

In finance, the capital asset pricing model is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be ... more

Capital asset pricing model ( including size premium and specific risk)

In finance, the capital asset pricing model (CAPM) is used to determine a theoretically appropriate required rate of return of an ... more

Tax amortization benefit factor

In Valuation (finance), tax amortization benefit (or tax amortisation benefit) refers to the present value of income tax savings resulting from the tax ... more

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