There are various types of return measures.

Refer to Reading 7 for a detailed discussion of this return measure.

Refer to Reading 8 for a detailed discussion of this return measure.

Refer to Reading 7 for a detailed discussion of this return measure.

The dollar-weighted rate of return is essentially the internal rate of return (IRR) on the portfolio. Refer to Reading 7 for a detailed discussion of this return measure.

Annualizing returns allows for comparison among different assets and over different time periods.

where c is the number of periods in a year and r

Monthly return: 0.6%. The annualized return is (1 + 0.6%)

The expected return on a portfolio of assets is the market-weighted average of the expected returns on the individual assets in the portfolio.

where Rp is the return on the portfolio, Ri is the return on asset i and wi is the weighting of component asset i (that is, the share of asset i in the portfolio).

1. A

2. Different types of investments generate different types of income and have different tax implications. For example, in the U.S. the interest income is fully taxable at an investor's marginal tax rate while capital gains are taxed at a much lower rate. Therefore, many investors therefore use the

3. The

4. An investor can also use

niyongana: in which situation liquidity and maturity cannot be investment constraint illustration by using numerical example |

jonan203: can you rephrase your question? |

khalifa92: in long time horizons situations? |