Investor Glossary-required rate of returnInvestor Glossary-required rate of returnInvestor Glossary-required rate of returnInvestor Glossary-required rate of returnInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Required Rate Of Return

The HTML to link to this page
 

The required rate of return is the minimum rate of return (expressed as a percentage) that an investor requires before investing capital. The degree of risk associated with an investment is reflected in the required rate of return. Investors and analysts often use the required rate of return as a discount rate for future cash flows from an investment. The required rate of return is also referred to as RRR, the "Magic Number" and the hurdle rate. For many investors, a beginning point in stock valuation is calculating the required rate of return. The Capital Asset Pricing Model (CAPM) is a method used in determining the required rate of return associated with an investment. On occasion, the required rate of return is confused with the internal rate of return.



Rate this required rate of return definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: real GDP, inflation, phantom income, liquidity ratio, per diem, retained earnings, FICO score, Key Rate Duration, Zero Cost Collar, deferred tax, covered put, labor relations, irrevocable trust, ex-dividend date, minority interest, option premium, command economy, 1031 exchange, 1035 exchange, 401a, dividends payable, risk management, current ratio, LIBOR, balance sheet, open position, VIX, implied volatility, EBITDA, in escrow, 144a, margin rate, stock market close, quality assurance, reverse mortgage, stock split, diluted share, wholly-owned subsidiary, required rate of return, average price per share, debt service coverage, APR, annual return, ex-dividend, cancelled check, deferred revenue, FTSE, limit order, class C shares


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use