Chris Gallant, CFA, is a senior manager of interest rate risk for ATB Financial with 10 years of experience in the financial markets. Suzanne is a content marketer, writer, and fact-checker. She holds ...

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. David Kindness is a Certified Public Accountant ...

Companies may lease assets to optimize financial terms and manage balance sheets. Capital lease interest can be computed using the IRR function in a spreadsheet. Adjust IRR formula for payment ...

When it comes to evaluating investment performance, investors and financial professionals rely on various metrics to gain insights into the effectiveness of their strategies. One such crucial measure ...

One of the most common misconceptions I see from new investors is assuming cash-on-cash return (CoC) and internal rate of return (IRR) are interchangeable. They’re not and understanding the difference ...

The rate of return on an annuity is a crucial aspect to consider when evaluating the suitability of this retirement ...

We estimate the average dollar invested in US mutual funds and exchange-traded funds earned 7.0% per year over the decade ended Dec. 31, 2024. That estimate, which is akin to an internal rate of ...

Being under the illusion that you are earning a high rate of return when your true return is sub-par often leads to overconfidence, which is a performance killer. Money-weighted returns (also called ...

Carried Interest refers to the fund manager’s incentive interest in an alternative investment fund, typically contingent on meeting key performance benchmarks. When gifting a percentage of their carry ...

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...