Living will and Rate of return: Difference between pages

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imported>Doug Williamson
(changed Periodic to per period)
 
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1. A contingency plan of how a financial institution could be wound up in the event of a collapse.
The investor's return on an investment, expressed as a proportion of the amount invested.


A requirement of the US Dodd-Frank financial reform law for financial institutions with more than $250 billion in assets.
Most commonly expressed as a percentage.




2. More generally, a set of instructions which specifies what actions are to be taken if a person is unable to do so due to illness or incapacity.
<span style="color:#4B0082">'''Example'''</span>


Also known as an advance decision.
GBP 1 million is invested.
 
GBP 1.03 million is repayable at the end of the period.
 
 
The rate of return per period (r) is:
 
r = (End amount / Start amount) - 1
 
Which can also be expressed as:
 
r = (End / Start) - 1
 
''or''
 
r = <math>\frac{End}{Start}</math> - 1
 
 
= <math>\frac{1.03}{1}</math> - 1
 
= 0.0300
 
= '''3.00%'''
 
 
== See also ==
* [[Periodic]]
* [[Periodic rate]]
* [[Real return]]
* [[Return]]
* [[Yield]]
 
[[Category:Corporate_finance]]

Revision as of 16:51, 19 November 2015

The investor's return on an investment, expressed as a proportion of the amount invested.

Most commonly expressed as a percentage.


Example

GBP 1 million is invested.

GBP 1.03 million is repayable at the end of the period.


The rate of return per period (r) is:

r = (End amount / Start amount) - 1

Which can also be expressed as:

r = (End / Start) - 1

or

r = <math>\frac{End}{Start}</math> - 1


= <math>\frac{1.03}{1}</math> - 1

= 0.0300

= 3.00%


See also