What are the components of return, Financial Management

Assignment Help:

What are the Components of Return

Return is fundamentally made up of two components:

Periodic cash receipts or income on the investment in the form of interest, dividends, etc. The term yield is usually used in connection with the component of return. Yield refers to income derived from a security in relation to its price, generally its purchase price.
Appreciation (depreciation) in the price of the asset is referred to as capital gain (loss). This is the difference between purchase price and price at which asset can be, or is, sold.

Related Discussions:- What are the components of return

Bank credit, Definition of 'Bank Credit': The amount of credit availab...

Definition of 'Bank Credit': The amount of credit available to a business or individual from the banking system. It is the aggregate of the amount of funds financial instituti

What can financial institution do for deficit economic unit, What can a fin...

What can a financial institution Frequently do for a deficit economic unit (DEU) that it would have difficulty doing for itself if the DEU were to deal directly along with an SEU?

Social responsibility-business ethics-business entity, Social responsibilit...

Social responsibility The firm must decide whether to operate strictly in their shareholders' best interests or be responsible to their employers, their customers, and the soc

Deficiency in design, Deficiency in Design - This exists when a control ess...

Deficiency in Design - This exists when a control essential to meet the control objective is missing or an existing control isn't properly designed so that even if control operates

Explain about interest rate management, Interest rate caps as well as colla...

Interest rate caps as well as collars are available on the over the counter (OTC) market or may be devised using market based interest rate options. They may be utilize to hedge cu

Step-up (step down) notes, These types of securities have more ...

These types of securities have more than one coupon rate and each subsequent coupon rate is higher (or lower) than the previous coupon rate. For

Beta, what is the value of beta for this fund ? If the benchmark index for ...

what is the value of beta for this fund ? If the benchmark index for this mutual fund increased by 11.00% during the period covered by beta measure, what was the rate of return for

Major proportion of the maximum financing requirement, Q. Major proportion ...

Q. Major proportion of the maximum financing requirement? Whether the credit terms themselves is able to be changed may depend upon the credit terms of competitors when set alo

Required rate of return, calculate

calculate

Hedging using commodity futures, Hedging Using Commodity Futures Produc...

Hedging Using Commodity Futures Producers of agricultural commodities are faced with price risk and production risk over a period of time and within a marketing year. In case o

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages