MANAGEMENT

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The gain or loss that results from an investment over a specified period of time is known as ____
 A risk B return C uncertainty D expected value
Explanation:

Detailed explanation-1: -A rate of return (RoR) is the net gain or loss of an investment over a specified time period, expressed as a percentage of the investment’s initial cost.1 When calculating the rate of return, you are determining the percentage change from the beginning of the period until the end.

Detailed explanation-2: -return. The gain or loss that results from an investment over a specified period of time is known as the return on the investment. Return on investment is a measure of investment efficiency, as well as the basis of comparison between two or more investment alternatives.

Detailed explanation-3: -In simple terms, the difference between the selling price and cost/purchase price of an investment can be described as capital gain/loss. If the selling price is higher than cost price, it results in a capital gain and when the selling price is lower than the cost price, it leads to capital loss.

Detailed explanation-4: -ROI stands for Return on Investment and is a measure of how much money is earned relative to the amount of money spent on an investment. It is usually expressed as a percentage and calculated by dividing the net profit from an investment by the cost of the investment.

Detailed explanation-5: -ROI measures the return of an investment relative to the cost of the investment. The Return on Investment (ROI) formula: Where “Gain from Investment” refers to the amount of profit generated from the sale of the investment, or the increase in value of the investment regardless of whether it is sold or not.

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