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‘The rate of return is the most important outcome for an investment(portfolio).’ Do you agree with...

‘The rate of return is the most important outcome for an investment(portfolio).’ Do you agree with this statement? Explain.(no less than 150 words)

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Answer #1

Yes I agree with this statement that rate of return is the most important outcome of an investment.

Rate of return is always the most important motive any investment because any person will always invest with the idea that they will earn profits. Rate of return always shows the profit that an investor has earned over his investment over a period. It is most important in an investment portfolio because it will show the overall return of an investment and the annualized return on the investment.

Rate of return can be applied for any investment like stocks, bonds, real estate etc. It shows how much they have earned or lost over a period of time between selling and orginal price. It helps us the investor to see his investment growth and it's changes. This rate of return can also be considered as holding period of return.

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