Mindset of Finance

Stock return is one of the factors which influence an investor's decision to invest in shares. Stock return signifies the returnearned by an investor for an amount of money that has beeninvested. Meanwhile, investment could be interpreted as placing a number of current funds, hoping to gain advantage in the future.

Return can be classified into two types, namely the realization of return and expected return. Return the realization of a return that isactually happening or could be called also return true. While theexpected return is the return which has not happened yet, but is expected to occur in the foreseeable future, by the investor. The equation can be used in the calculation of stock returns is as follows.