The formula: "Return" here is usually net income; it goes into the numerator. Then in the denominator? Rhymes with shmet shmassets.
So what are "net" assets? Like...we know what assets are. Assets minus liabilities? Remember ALE? That. So shareholder's equity is the denominator, a.k.a. "net assets" here, and we're good.
RONA. Sound familiar? Yeah, it's the name of your old secretary. Good memory.
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Finance: What Is a Real Return?67 Views
finance- a la shmoop. what is a real return? like is there a fake return? you
know like the news? well kinda .real return refers to an [man frowns talking to camera]
investment return mapped against inflation. so let's say you invest in a
bond that pays five percent a year for ten years and then pays you back your
principal .boring but nice- you know like a good doctor visit. your nominal return
over that period was 5% but since inflation was 3% a year during that
period on average your real return was only 2% a year- meaning that the
performance of your investment only eked out a 2% net gain against the price of [equation]
milk gas and you know knocked off iPhones. so don't be a chump who thinks
that they're making more money than they really are, and you know keep on keeping
it real. [man sitting in chair, talks to camera]
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