Under what circumstances can total return be negative?

Question

Question

Answer 1

Answer #1

Circumstances under which total return can be negative

1) poor performance of the stock or bond ( price drops to lower levels)

2) hyper Inflation

3) if the interest rate of debt is higher than the ROI

4) Cash outflows are higher than cash inflows ( amount of capital you are putting in is higher than the revenue)

Answer 2

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