Archive for the 'Definitions' Category

The actual return earned on an investment after factoring in the rate of inflation. It is the real return which generates the increase in wealth of an investor over the long term.

Alpha is a statistic that measures how well an investment performed over a specific time period with respect to risk.  A positive alpha score means the investment generated higher returns than other investments with similar risk level.  A negative alpha means just the opposite. Alpha helps you put investment performance into context.  For example, strong performance during a given period may indicate that the investor made great investment decisions -- or it could means that the ...

Alpha Annuity

Annuities are insurance products designed to help you invest for retirement and provide supplemental income during your retirement. There are two categories of annuities and each has two types: Deferred Annuity Deferred annuity allows you to invest for retirement on a tax-deferred basis. This allows your investment to grow faster without the burden of taxes. There are two types of deferred annuity: A deferred fixed annuity provides you with a guaranteed rate of returns. A deferred variable annuity performance fluctuate ...

Return on investment, or ROI, is the result expressed in a percentage compared to the capital invested. For example, if $1,000 invested in a marketing campaign resulted in $10,000 of sales, then the return on investment, or ROI, is 900% (i.e., ($10,000-$1,000) / $1,000). In term of equity investment, if you invested $1,000 in a stock and at the end of the year it's worth $1,100, then the return on investment is 10% (i.e., ...