Just as getting more money produces a higher rate of return, getting the money sooner also produces a higher rate of return.
Higher risk investments have a higher potential return.
A change in the required rate of return will affect a project's Internal Rate of Return (IRR) by potentially shifting the project's feasibility. If the required rate of return increases, the project's IRR needs to be higher to be considered acceptable. Conversely, a decrease in the required rate of return could make the project's IRR more attractive.
according to the come rates the returns we get if we purchase higher rated coupon bonds we get higher returns
Money deposited in an interest bearing account has a rate of return. the institution will take that money and reinvest it so they can make money off of it as well.This rate of return on the internal investment is the internal rate of return, which is usually higher than that paid to the original investor.
Higher risks should produce a higher return; therefore, the rate increases.
Yes it is true. When evaluating projects using internal rate of return projects having higher early year cash flows tend to be preferred at higher discount rates.
Short selling stocks is risky because there are no guarantees of what the market share will be after the sell. The return rate could be high or low, depending on if the stocks fell as predicted.
The expected rate of return is simply the average rate of return. The standard deviation does not directly affect the expected rate of return, only the reliability of that estimate.
This is subjective. The best rate of return would be an interest rate higher or equal to an interest rate one would get for the same amount of time with the same risk.
Yes, the interest rate and rate of return are exactly the same.
expected rate of return
If the rate of inflation exceeds the nominal rate of return during the period in question, then the real rate of return can be negative.