FIN 501 Lecture Notes - Lecture 3: Total Return, Exxonmobil, Capital Gain
Document Summary
Return: the level of profit from an investment that is, the reward for investing. Table 4. 3 historical investment data for exxonmobil corp. (xom) (source: dividends and end of year closing prices were obtained from yahoo ! Returns vary over time and by type of investment. Significant differences exist among the average annual rates of return realized on stocks, long term government bonds, and short term government billss. Table 4. 4 historical returns for major asset classes (1900 2014) Table 4. 4 historical returns for major asset classes (1900 2014) (source: data from credit suisse global investment returns yearbook 2015. ) Satisfactory investment: one for which the present value of benefits (discounted at the appropriate discount rate) equals or exceeds the present value of its costs. If the present value of the benefits equals the cost, you earn a rate equal to the discount rate.
