How do I calculate the rate of return?
When calculating the rate of return of an investment, it is important to use the initial cost of the investment as a baseline. To calculate the rate of return, use the formula
Rate of Return = (Final Value - Initial Value) / Initial Value where the final value is the current market value of the investment. To ensure accuracy, it is advisable to use Sourcetable to input the data and calculate the rate of return.
What types of investments can the rate of return be applied to?
The rate of return can be applied to real estate, bonds, stocks, and fine art investments.