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Unformatted text preview: a particular stock index representing a set of stocks One of the most popular is the Standard & Poors Depository Receipt (S.P.D.R, also called Spider) Real estate Buying a home or purchasing rental property or land Return from investing in real estate comes in the form of rent payments and selling the property for a higher price than paid for it Investment Return and Risk Measuring the return on your investment R = return Pt = price when sold Pt-1 = price when purchased Example: If you pay $1,000 to make an investment and receive $1,100 when you sell the investment in one year, you earn a return of: R = Incorporating dividend or coupon payments Your return would be even higher if you also earned dividend or coupon payments D = dividends earned while you owned the investment...
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This note was uploaded on 02/22/2012 for the course FINANCE 250 taught by Professor Maryevans during the Spring '12 term at Rutgers.
- Spring '12