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How is expected rate of return calculated from average rate of return on investment and standard deviation?
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.
Is an investment an implicit cost?
Yes, investment is an implicit cost because it is a firm investing their own money in something that (by definition of an opportunity cost) could have been invested in something else. Investment is the opportunity cost of a firm using their own money, and whether or not the opportunity that the firm invested in is worthwhile is defined by the NROR (the normal rate of return).
Are interest rate and rate of return the same?
Yes, the interest rate and rate of return are exactly the same.
Does the capital asset pricing model help us to get required rate of return or expected rate of return?
expected rate of return
How can you have a negative real rate of return over the same period?
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.
How would you describe a rate of return?
An investment's rate of return is expressed as a percentage.
What is formula for average rate of return?
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
How do you get a higher rate of return?
Just as getting more money produces a higher rate of return, getting the money sooner also produces a higher rate of return.
Risk free rate is 5 and the market risk premium is 6 What is the expected return for the overall stock market What is the required rate of return on a stock that has a beta of 1.2?
Expected return= risk free rate + Risk premium = 11 rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)
What is a synonym for 'rate of return'?
Refresh Rate
Which method is economically efficient if the hourly wage rate and implicit rental rate of capital are i Wage rate 1 rental rate 100 ii Wage rate 5 rental rate 50 iii Wage rate 50 rental rate?
i think i also no idea about this
In finance what is rate of return?
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.
