Return on investment

BY MATTHEW D. MOHR

When an individual places money at risk in any venture, the person expects to get his/her investment back plus an additional amount for taking on the risk What is a fair return is subject to debate U.S. Treasury bills (loans to the federal government) are usually considered the least risky type of investment Historically, the Treasury has provided returns below those earned over time on common stock, corporate bonds, real estate and other more risky investments. With such a wide variety of investments available, why do people invest in a private business?

Entrepreneurs are generally motivated by a purpose to serve, not just their financial return on investment Venture capitalists own businesses to garner above-average returns for themselves, not necessarily for any altruistic reasons. In my opinion, a reasonable target for venture capital return on investment is 25 percent Others say 45 percent is more appropriate As a private business owner,