Return on I nvestment . Discuss the two components that determine the return on investment. The components are (1) dollar income - interest...

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Finance

Return on I
nvestment
.
Discuss the two components that determine the
return on investment. The components
are
(1) dollar income
-
interest or dividend
paid during the holding period and (2) the change in the valueof
investment
.
Answer must be 250 words long and do not plagiarize!!! Answerall parts of question!!

Answer & Explanation Solved by verified expert

3.7 Ratings (596 Votes)

Dollar income interest or dividend paid during the holding period To identify the return on investment it is important to consider the entire stream of cash inflows and outflows during a given time period This includes Interest received or dividend income received The important aspect is to consider the Discount Factor involved for each of the regular income received and the time period for the same 2 The change in See Answer

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Transcribed Image Text

Return on Investment.Discuss the two components that determine thereturn on investment. The componentsare(1) dollar income-interest or dividendpaid during the holding period and (2) the change in the valueofinvestment.Answer must be 250 words long and do not plagiarize!!! Answerall parts of question!!