True financial well-being doesn't start by asking what the market can give you. It starts by calculating what you need to get ...
Discover how to calculate internal rate of return (IRR) to evaluate investment opportunities and understand their potential returns.
The Forward Rate of Return (FRR) was popularized by noted Investment Manager Donald Yacktman. The whole purpose of stock investing is balance the present rate of return, i.e., the dividend (if any) I ...
The risk-free rate is the rate of return offered by an investment that carries zero risk. Every investment asset carries some level of risk, however small, so the risk-free rate is something of a ...
Real rate of return adjusts for inflation, providing a true growth measure. S&P 500's real rate is 7.9%, versus a nominal 11.8%, due to inflation. Using real rates in retirement planning ensures ...
The rule of 72 is a shortcut investors can use to determine how long it will take their investment to double based on a fixed annual rate of return. To use the rule of 72, divide 72 by the fixed rate ...
The internal rate of return, or IRR, allows investors to analyze the profitability of investments and companies to analyze the profitability of capital outlays. The easiest way to understand IRR is by ...