1.21 jigawatts hit you in your Delorean, and you go back to 1998. Your stock has an absolute percentage growth of 98, meaning that it almost doubled during the year. You're feeling a bit genius-y because you were so smart to buy eBay on New Year's Eve at the beginning of the year, but you looked at the overall NASDAQ performance and realized that NASDAQ went up (give or take) 80% that year. So your relative out-performance against the market was that you beat it by 18%. Good work, but nothing that will find its way into the sequel, The Aeneid Part 2: The Revenge. Absolute percentage growth is a vastly different animal from relative percentage growth, especially in the investing universe, where the quality of most investments are mapped to a benchmark index like the S&P 500. Up is good. Almost absolutely, except when you could've been more up somewhere else.
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Finance: What are lenders?27 Views
finance a la shmoop what are lenders is that a bagel company hmm okay well maybe
it doesn't matter here lenders are the people and institutions
and countries who loan money banks are lenders they loan money for small [woman walks into bank]
business for big business and well everything in between
banks are big lenders they generally focus on large amounts for big
corporations and take their spread then you have savings and loans well they're
smaller more intimate local cousins of the banks and they focus on local loans
like your local flower shop needs 25 grand in credit but lenders also sell a [flowers in a store]
special kind of loan a mortgage for when you want to buy a home and the interest
on mortgages is distinctively tax-deductible your big brother can also
be a lender that hundred bucks he loaned you yeah is not like the hundred that [sister approaches big brother]
grandmama quote loaned you unquote ie Big Brother's long does not just get
naturally forgotten his alone carries interest in newgy penalties when it's [fist appears as sister smiles]
not paid back to lenders it's people who loan money lending loaning got in there
kind of related [sister being nuggied]
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What is Relative Return? Also referred to as alpha, relative return is return on investment (most often a mutual fund or ETF) that generates relati...