Investing Ch 4
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Created by:
fmwalters21 on September 8, 2011
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12 terms
Terms | Definitions |
|---|---|
 deflation | a period of generally declining prices |
| expected return | the return an investor thinks an investment will earn in the future |
| income | cash that investors periodically receive as a result of owning an investment |
| inflation | a period of generally rising prices |
| return | the level of profit from an investment- that is, the reward for investing |
| total return | Is found by combining the capital gain (or loss) with the income |
| satisfactory investment | an investment whose present value of benefits (discounted at the appropriate rate) equals or exceeds the present value of its costs |
| expected inflation premium | the average rate of inflation expected in the future |
| holding period | the period of time over which one wishes to measure the return on an investment vehicle |
| holding period return HPR | the total return earned from holding an investment for a specified holding period (usually one year or less) |
| nominal return | the actual return earned on an investment expressed in current dollars |
| paper return | a return that has been achieved but not yet realized by an investor during a given period |
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