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A good time-weighted return is a measure of investment performance that eliminates the impact of cash flows. It is calculated by taking the geometric mean of a series of sub-period returns. This method is effective because it accounts for the timing and size of cash flows, providing a more accurate measure of investment performance over time.
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What is good debt to eqity ratio?
Good debt to equity ratio would be where your Weighted Average Cost of Capital is minimum. You can also see industry standards.
What is a good Capital Asset Pricing Model (CAPM) and how can it be effectively utilized in financial analysis?
The Capital Asset Pricing Model (CAPM) is a financial model that helps investors assess the expected return on an investment based on its risk level. It considers the risk-free rate, the market rate of return, and the asset's beta, which measures its volatility compared to the overall market. By using CAPM, investors can determine if an investment is priced correctly based on its risk level. This model can be effectively utilized in financial analysis by providing a framework for evaluating the risk and return of investments, helping investors make informed decisions about their portfolios.
What is considered a good return on investment (ROI) for a startup business?
A good return on investment (ROI) for a startup business is typically around 20 to 30. This means that for every dollar invested in the business, the business generates a return of 20 to 30 cents.
What is a good rental yield and how can it be calculated?
A good rental yield is typically considered to be around 8-12. It can be calculated by dividing the annual rental income by the property's value, and then multiplying by 100 to get a percentage.
A good investment?
A good investment is something that you put effort, time, and energy into. In hopes that it will return to you multiplied.
