The correct answer is option C, Making a profit from savings.
What Is the anticipated return?
- The expected return is the profit or loss that an investor anticipates on a known historical rate of return investment (RoR).
- It is calculated by multiplying potential outcomes by their likelihood of occurrence and then adding the results.
How does stock market investing make you money?
- The primary reason investors own stock is to profit from their investment.
- This return can generally be obtained in two ways: The stock's price rises because it appreciates. If you want, you can then sell the stock for a profit.
What is the profit generated by an investment?
- The profit earned on an investment is divided by the cost of the investment to calculate the return on investment (ROI).
- When expressed as a percentage, an investment with a profit of $100 and a cost of $100 has an ROI of 1 or 100 percent.
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