What is meant by the term return?
What is the difference between monetary returns and percentage returns?
It is a process under which an individual, group or company puts money to earn a return. They aren't utilized today at present but are meant for future growth. The return or results in any investment can be positive and negative both.
Answer and Explanation:
Any gain or loss an individual encounter in investment is known as a Return. A return that is negative is a loss and positive is a profit for the investor.
Difference between monetary returns and percentage returns: The return on any particular investment that is expressed in terms of percentage is known as percentage return. Whereas the returns expressed based on the fixed money value is monetary returns. For example, in an investment of $100, the investor will get a return of 10% i.e. $10 and at the end of the period, the total amount will be $110. SO here the 10% is the percentage return and the $10 is the monetary return.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Finance 305: Risk ManagementChapter 3 / Lesson 3