Returns Across Investment Classes
Multiples, and therefore ROI, are useful tools for quickly comparing investments within or across asset classes. Here’s a comparison of returns on various asset classes.
Comparison of Investments | |||||
Investment | Typical Returns | Multiple | Liquidity | Use of Leverage | Risk |
Bonds | 1% – 4% | 25.0 – 100.0 | High | Low | Low * |
Stocks | 6% – 10% | 10.0 – 16.6 | High | Low | Medium |
Real Estate | 4% – 12% | 8.3 – 25.0 | Medium | High | Medium |
Businesses | 15% – 40% | 2.5 – 6.6 | Low | Medium | Very High |
*If held until the maturity date.