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The rate of return on an investment, adjusted for external factors, such as interest paid or received i.e. factors that are not the actual investment itself.
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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
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)
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.
What are the differences between accounting rate of return and internal rate of return?
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
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.
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
Describe a Situation in the human body that would cause an increase in the rate of cell division of certain cells followed by a return to the normal rate of division?
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
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 does a change in the required rate of return affect project's Internal Rate Of 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.
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)
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.
What is a synonym for 'rate of return'?
Refresh Rate
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.
