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Yes, the interest rate and rate of return are exactly the same.
expected rate of return
Expected return= risk free rate + Risk premium = 11 rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)
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.
Internal rate of return (IRR) is a discounted method used for Capital budgeting decisions (investment etc) while accounting rate of retun is a measure for calculating return for a one off payment. IRR is actually the discount rate that equates the Present value of the cash flows to the NPV of the project (investment) while accounting rate of return just gives the actual rate of return. Habib topu1910@gmail.com
What constitutes a constant growth stock is a stock that has dividends that are expected to grow at a constant rate. The formula used to value a constant growth stock is determined by the estimated dividends that will be paid divided by the difference between the required rate of return and growth rate.
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.
the rate of change is related to the slope; the higher the slope, the higher the rate. If the line is vertical, that is infinite slope or infinite rate of change which is not possible
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.
An investment's rate of return is expressed as a percentage.
Where Equals __RAverage rate of return Rt Return at time t TNumber of time points Where Equals u Average rate of return Ri i-th return n Number of observations Where Equals __RAverage rate of return Rt Return at time t TNumber of time points Where Equals u Average rate of return Ri i-th return n Number of observations
Expected return= risk free rate + Risk premium = 11 rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)
Just as getting more money produces a higher rate of return, getting the money sooner also produces a higher rate of return.
Refresh Rate
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.