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
InvestmentTypical ReturnsMultipleLiquidityUse of LeverageRisk
Bonds1% – 4%25.0 – 100.0HighLowLow *
Stocks6% – 10%10.0 – 16.6HighLowMedium
Real Estate4% – 12%8.3 – 25.0MediumHighMedium
Businesses15% – 40%2.5 – 6.6LowMediumVery High
Information Sources

*If held until the maturity date.