Classical Guitar
Nov 5, 2006, 01:42 PM
Would the normal rate of return be the same in all industries? Would it change over time?
CaptainForest
Nov 5, 2006, 03:09 PM
No and yes.
No, every industry has their own normal rate of return. For example, in the retail business, it could be 40% where as in the steel industry it could be 12%. The numbers re just examples, I don't know the exact industry averages.
Yes, it can change over time. An industry that was once unique like the photography industry had a huge rate of return on cameras, now, with digital cameras, the rate of return on cameras is far lower. That is why they have branched out into other areas as well.
sank
Nov 4, 2007, 05:55 PM
Would the normal rate of return be the same in all industries? Would it change over time?