It would be a 6.7 %
return on assets because $ 800,000 divided by $ 12,000,000 in assets is 6.7 %.
Not exact matches
Investors who were underweight
on the Canadian market
because of negative outlooks
on the Canadian dollar, oil and other commodities are
returning, says Lesley Marks, senior vice-president and chief investment officer, Fundamental Canadian Equities, at BMO
Asset Management.
Other benefits of investments using debt include tax advantages and a higher
return on my investment (ROI)
because I've used less of my own money to purchase the
asset.
As Nobel economist (and one of my dissertation advisors at Stanford) Joe Stiglitz noted
on Friday, a good part of the reason for rising oil prices is
because the producers are already awash in U.S.
assets, and to supply significantly more oil will just force them to accumulate more low -
return assets.
Their ROICs are so low largely
because we hold them accountable for earning a
return on capital they have destroyed through
asset write - downs.
There are no rules
because asset price moves carry
on for unpredictable amounts of time, even if they do tend to
return to the mean over the long term.
The whole industry has got a negative risk - adjusted
return because the
return on assets is so low.
The District is responsible for funding the plans, and if plan
assets decrease (e.g.
because of a year of negative
returns on assets invested in the stock market), the District must make up the loss, generally smoothed over several years.
That's
because the year you die, all of your
assets will be deemed to have been sold and taxes will be due
on your final tax
return.
What's interesting about this comment, is Klarman has been able to produce really solid
returns on a very large amount of capital, and I think it's in large part
because of the simple math of
asset turnover — Klarman buys bargains, waits for them to be valued at a more reasonable level, sells them, and repeats.
Be careful about comparing investment
returns,
because you might not be comparing apples to apples depending
on your
asset allocation, geographical composition, etc..
Diversification means buying a variety of investments in different
asset classes, choosing them both
on their own merits and
because, in combination, they may help you keep risk in check without significantly reducing
return.
Extensive research details a
return premium associated with corporate profitability, measured by metrics such as operating profitability,
return on equity, and
return on assets.10 Novy - Marx (2013) suggested that the so - called profitability anomaly (labeled as such
because it defies the efficient market hypothesis) results from investors» limited attention, a form of cognitive and behavioral bias.
Piotroski believes these ratios are important
because they «reflect two key constructs underlying a decomposition of
return on assets.»
This is
on top of the problem that when high - quality long interest rates are so low, it is typically a bad time to try to make money in financial
assets,
because returns on risky
assets are typically only 0 - 2 % percent higher than the yield
on long BBB / Baa debt over the long run.
Ideally, of course, I would like to see some taxes due under this scenario
because it would mean that there is some kind of
return on these
assets.
We have many businesses that earn extraordinary
returns on equity
because there is very little equity involved; e.g., much of our
asset management business, our advisory business, parts of our payments businesses and others.
On the one hand, the average funding ratio (
assets as a percentage of the present value of future obligations) is below 80 %
because of inadequate contributions by sponsors (states and municipalities) and poor investment
returns since the collapse of the technology bubble in 2000.
Because if riskier
assets could be counted
on for higher
returns than they wouldn't be riskier.
«If an investor had determined that an
asset allocation was appropriate for their risk /
return goals, we would caution against changes in response to the yield environment
because generally that involves taking
on greater risk,» says Todd Schlanger, senior investment strategist at Vanguard Investments Canada.
Dipping your toes into the water bit by bit seems like the best approach to the blue - chips that deliver excellent total
returns (in the case of Hershey,
because it perpetually earns 16 % annual
returns on assets while Brown - Forman's total
returns on invested capital are similar) but never appear to offer a particular attractive entry price.
Begin with a Focus
on the Long Term To reduce the impact of idiosyncratic shocks that occur in
asset returns, we focus
on long - term
returns because, historically, the more
returns that are averaged together, the tighter the distribution.
In the process,
because of the over-leverage allowed for high
returns on equity to be generated from low
returns on assets, the buyers of risky
assets overpaid for their interests.
This problem is compounded by optimizers that work at the
asset level (e.g., mutual funds),
because a mutual fund may change the way it does things quarterly (which instantly negates all of the past
return data which the correlation coefficient numbers were based
on).
I agree cash does affect
return on equity indirectly
because that cash could have been used to invest in additional
assets or RD to improve sales or net income.
Our research
on the Fundamental Index ® concept, as applied to bonds, underscores the widely held view in the bond community that we should not choose to own more of any security just
because there's more of it available to us.10 Figure 9 plots four different Fundamental Index portfolios (weighted
on sales, profits,
assets and dividends) in investment - grade bonds (green), high - yield bonds (blue) and emerging markets sovereign debt (yellow).11 Most of these have lower volatility and higher
return than the cap - weighted benchmark (marked with a red dot).
Hello I would like to share my master plan of new जीवन anand policy My age is 30 I have purchased 7 policies of 1 lac sum assured and each maturity year term 26 to 32 I purchased in 2017 Along with I have purchased 3 policies of same jivananad of 11lac each Maturity year term 33,34,35 Now what will I have to pay is rs, 130000 premium per year means 370rs per day At age of 55 in year 2047 I will start getting
return, of, 3lac maturity per year till 2054 For 7policies of i lac I buyed for safety of paying next 10 years premium of 130000 As year by year my liability goes
on decreasing and at the age of 62 to 65 I get my major part of maturity amount around 16000000 one crore sixty lac Along with 4000000 sum assured continued for rest of life So from above example it is true that you can make money to make money for you You can enjoy a large sum by just paying 370 per day and you will feel you have earned 19000000 / 35 years = 1500 per day And assume if I die after 5 years then in this case also my spouse will get 7500000 as death claim against 650000 paid premium Whats bad in this A
asset is getting created for you It is a property of 2 crores which you are buying for 35 year installment If you make fd of 2000000 Lacs against this policy u will get 135000 interest per year to pay for 35 years If u buy a flat for 20 lack in 2017 there is no scope of valuation of Flat will be 2 crores But as I described you are creating a class
asset for your beloved easily just investing 10500 per year for 35 years And too buy a term of 50 Lacs with it And rest you earn deposit in ppf Keep in mind if you will survive then only ppf will create corpus for you but in lic your family is insured to a higher extent till 1 crore with term including And its sufficient if you are earning 100000per Month no problem for investing of 10 % in New जीवन anand with rest 90 % you go with ppf, mutual funds, equity, gold, lottery, real estate any thing but keep 10 % for new jeewan anand it's a class if you understand it properly and after all if you rely only
on term there are more chances of rejecting claims as one thing is sure cheap things just come under warranty but lic brand is guaranteed
because in case of demise if your nominee doesn't get claim then your all hardwork is going to be waste so think and invest take long term and bigger sum assured for least premium You can assign your policy for taking flat or property it is a legal
asset of you But term never.
Lenders are willing to make stretch senior loans
because they have a senior claim of security
on the
asset and cash flow and will make a higher
return, Derrington adds.
«If I bought this property at a capitalization rate of 10 %, I would get a 10 %
return on the
asset, maybe a little higher
because I would be using my own debt.
«You'd think there'd be more
return on the larger property, but the smaller
assets can win out
because of the full - service expenses.»