a.What are investment returns? What is the return on an investment that costs $1,000 and is sold after one year for $1,100?
Answer: Investment return measures the financial results of an investment. They may be expressed in either dollar terms or percentage terms.
The dollar return is $1,100 - $1,000 = $100. The percentage return is $100/$1,000 = 0.10 = 10%.