I have a club promotions company and my friends are wanting to get involved by investing. I know the higher return is better:), but what is a decent return for a low risk opportunity?
2007-01-14 09:43:50 · 6 answers · asked by Siege 2 in Business & Finance ➔ Investing
Safe return t-bills 5%
Investment in long term junk bonds 9+%
less safe return by investing in blue chip stocks 10%
somewhat less safe than above investing in small cap stocks 13%
somewhat speculative return 16% investing in China and India companies
very speculative return 22%+ investing in high risk speculative stocks.
2007-01-14 12:56:04 · answer #1 · answered by Anonymous · 0⤊ 0⤋
depends on the timeline and risk of the intial investment. High risk is usually rewarded with a potential high reward. If the timeline is say 20 or so years, making 10%/yr for 20 years would be pretty good in my book. The benchmarkl for return is really the stockmarket (compare rates of return to the Dow index or S & P etc.)
2007-01-14 21:09:50 · answer #2 · answered by Anonymous · 0⤊ 0⤋
My dad used to say that you eat better on 12% returns, but you sleep better on 8%. You can buy an index fund and just follow what the stock market does. The least risky is US Treasury bonds, which I think pay 4-5%. As your returns go up, so do your risk.
2007-01-14 18:23:35 · answer #3 · answered by Katherine W 7 · 0⤊ 0⤋
It depends upon the risk associated with the investment.
And the cost of money (e.g. interest rates, inflation) for that currency.
2007-01-14 19:29:11 · answer #4 · answered by andrew f 3 · 0⤊ 0⤋
24%
2007-01-15 01:28:29 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Only you can answer that.
2007-01-14 17:48:40 · answer #6 · answered by Always Right 7 · 0⤊ 0⤋