An investment's rate of return is expressed as a percentage.
The minimum rate of return the company must earn to be willing to make the investment. It is the rate of return the company could earn if, rather than making the capital investment, it invested the money in an alternative, but comparable, investment.
Lets say you get a small injury, like a cut. The skin cells would rapidly divide until the external regulators tell the cell to stop. this will be followed by a return to the normal division rate
An increase in a firm's expected growth rate would normally cause its required rate of return to
In finance, the rate of return is a profit from an investment whereas the set rate determines the profit. For example, if an investor receives 10% for every $100 invested then the rate of return would be $10.00.
You use the formula (Return - Capital / Capital) x100% = rate of return. An example would be yielding 110$ out of 100$ you initally paid, using the formula, it would be 10% return.
This indicates the rate at which the R157 bond is trading. This rate however is used frequently to describe the Risk Free Rate of Return for the market, which is required for CAPM calculations.
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
The value of the required rate of return would be the same percentage. The investment will not be purchased by a buyer if the percentage is not fixed, solidifying the rate of return when the investment is sold. The value may be more, however, but not less.
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.
Yes, the interest rate and rate of return are exactly the same.
That person would be altruistic.
If the birth rate were to increase and the death rate were to remain the same, the population would grow.