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Balancing Your Return Ideals With the Realities of Risk

Step 1: How Do I Know What to Expect From an Investment?

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Every builder starts with a foundation. If you are new to investing, you are building an investment portfolio, and you need to start with an investment foundation. That foundation consists of the basic investment principles.

Classroom Steps

Boiled down to its bare basics, investing concerns returns and risks.

An investor's return consists of current income, plus capital gains due to growth, minus any losses from the investment.

Return = current income + capital gains due to growth - any losses

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