Returns

Chapter
Part of the Springer Texts in Statistics book series (STS)

Abstract

The goal of investing is, of course, to make a profit. The revenue from investing, or the loss in the case of a negative revenue, depends upon both the change in prices and the amounts of the assets being held. Investors are interested in revenues that are high relative to the size of the initial investments. Returns measure this, because returns on an asset, e.g., a stock, a bond, a portfolio of stocks and bonds, are changes in price expressed as a fraction of the initial price.

Keywords

Random Walk Hedge Fund Initial Investment Random Walk Model Closing Price 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.School of Operations Research and Information EngineeringCornell UniversityIthacaUSA

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