Hello Accelerated Math Students! As part of your Quarter 2 investment project, you will post on this blog using your holiday pseudonym. You will also comment on two other posts. EXTENDED DUE DATE: SUNDAY DECEMBER 11, 2016. The grades are now finished for the blog.
Thursday, December 8, 2016
Two Different Rate of Return
Besides learning that investing in a company is way more helpful than putting my stack of cash in a savings account, I also learned about the difference between different rate of return. When I started researching for the annual rate of return of the company I wanted to invest in, forward rate of return popped up. I thought they were the same until I looked up what they both meant. Forward rate of return is what kind of return you would expect from the stock performance of a company (www.gurufocus.com). Annual rate of return is the profit from an investment in the time period of a year. Forward rate of return usually have a higher percentage than annual rate of return.
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I also thought that "rate of return" and "Forward Rate of Return" meant the same thing. To add on about Forward Rate of Return is, it is sometimes referred "to the fixed for a future obligation, such as the interest rate on a loan payment" according to investopedia.com. Thank you for sharing the difference between Forward Rate of Return and return of rate to everyone.
ReplyDeleteYou also have a chance of losing your money from stocks if they go bankrupt, which is a risker option than a bank, but earns you alot more.
ReplyDeleteI also believe the same and was going to blog about it...but I saw this and was like......bruh..... but anyways good job
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