Is 15 a good return on an investment?
Robert Miller
Updated on February 10, 2026
A really good return on investment for an active investor is 15% annually. It’s aggressive, but it’s achievable if you put in time to look for bargains. You can double your buying power every six years if you make an average return on investment of 12% after taxes and inflation every year.
What is a good average annual return on investment?
Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average. Some years will deliver lower returns — perhaps even negative returns. Other years will generate significantly higher returns.
How do I get a 10% return every year?
Top 10 Ways to Earn a 10% Rate of Return on Investment
- Real Estate.
- Paying Off Your Debt.
- Long-Term Stocks.
- Short-Term Stock Trading.
- Starting Your Own Business.
- Art snd Other Collectables.
- Create a Product.
- Junk Bonds.
What is the expected return on an investment portfolio?
To illustrate the expected return for an investment portfolio, let’s assume the portfolio is comprised of investments in three assets – X, Y, and Z. $2,000 is invested in X, $5,000 invested in Y, and $3,000 is invested in Z. Assume that the expected returns for X, Y, and Z have been calculated and found to be 15%, 10%, and 20%, respectively.
What is the purpose of the expected return?
Expected return is simply a measure of probabilities intended to show the likelihood that a given investment will generate a positive return, and what the likely return will be. The purpose of calculating the expected return on an investment is to provide an investor with an idea of probable profit vs risk.
What is the standard deviation of expected returns?
That is, Investment A has a standard deviation of 12.6% and Investment B has a standard deviation of 2.6%. In addition to expected returns, wise investors should also consider the likelihood of a return to better assess risk.
What’s the average return on a stock investment?
If you’re a new investor and expect to earn 15% or 20% compounded returns on your blue-chip stock holdings over decades, you expect too much. It’s not going to happen.
