1] Pesando (1993), for example, constructed a price index of modem prints over 1977 to 1992 and estimated that the average real annual rate of return
on an aggregate print portfolio was only 1.
The financial concepts include: stock market indices, rates of return, beta coefficient, the capital asset pricing model, expectations, annual percentage rate, effective annual rate of return
, geometric mean and sensitivity analysis.
Siegel reports that, for roughly the past 200 years, the average annual rate of return
in the stock market has been more than 10%.
With stocks, however, that dollar could have soared to $1,406 over 71 years by having an average annual rate of return
(ROR) of 12.
For example, a 20 year old and a 35 year old each invest $2,500 a year in an RSP and receive 10% as an annual rate of return
Metapoint has parlayed this advantage into a 47 percent annual rate of return
, Galante notes, adding, "An investor would be hard-put to get that return anywhere else in the market.
For example, American Research and Development's (ARD) $70,000 investment in Digital Equipment Corporation (DEC) grew to more than $500 million in about 12 years, which translates into a compounded annual rate of return
of more than 100 percent.
The market-neutral fund seeks an average annual rate of return
equal to the Treasury-bill yield plus 5 percent, net of all fees and with no negative years.
s,t and t+1] measures an average annual rate of return
during the two calendar years t and t + 1.
This netted him a 37 percent annual rate of return
after taxes, or about ten times better than what he could have gotten in a good money market account at current rates.