Stock Return

What is a good return on a stock?

The main factor to be considered in order to determine a good return is the risk level, for example investing in penny stocks is a high risk of loosing the investment but at the same time it has a change to go over 100% return but this will never happen with stable high value stocks with less risk. In general, to evaluate the performance of your stocks, compare their return to returns of other stocks in the same industry and you can evaluate your stocks choice accordingly.

What is stock total return?

Stock total return is the percentage of increase in stocks value , it is represented as the current value of stocks in addition to any dividends already paid compared to the original value at which stocks were purchased.

What is daily return on stock?

Daily return on a stock is used to measure the day to day performance of stocks, it is the price of stocks at today’s closure compared to the price of the same stock at yesterday’s closure. Positive daily return means appreciation in stock price on daily comparison.

How do I calculate return on stock?

Return on stock is equal to the sum of all dividends yielded from the stock and the stock capital gain minus the initial cost of the investment divided by the initial cost value for investment, end result is multiplied by 100 to convert into percentage.

How do I convert daily return to annual return?

Suppose an investment yields 0.02 percent daily, divide by 100 to convert it into decimal to percent format. Raise the figure to the power of 365 to determine the annual return in decimal to percent format. For example, raising 1.0002 to the 365th power equals 1.0757 would give you a 7.57 percent effective annual return. Most investments are presented as an annual return, so to make meaningful comparisons, you need to convert daily returns to annualized rates of return.

Check Out Fundamental Analysis vs Technical Analysis