0
If you're trying to figure out your minimum rate of return, it's how much money you want to make.
Benjamin Graham's value investing formula used the return rate of US Treasury notes, because if you couldn't make at least the 7% or whatever they returned, you were better off buying those notes, because the US government is very likely to pay you back.
These days, you probably want to earn more than 2%. Remember to calculate the taxes you expect to pay and the rate of inflation, as well as any fees you have to pay for your investment.
I use a return rate of 12% for myself, but I am an aggressive investor.
What else can I help you with?
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?
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?
If beta coefficient is 1.4 and the risk free rate is 4.25 and the market risk premium is 5.50 what is the required rate of return?
Require Rate of Return is formulated as: Riskfree Rate + Beta(Risk Premium) Required Rate of Return = 4.25 + 1.4 (5.50) = 11.95%
If beta coefficient is 1.4 and the required rate of return is 12.10 and market return is 9.5 what is the risk free rate?
13.3
If the expected rate of return on a stock exceeds the required rate then?
then it is a good buy =-) To put it simply.
If beta coefficient is 1.4 and the risk free rate is 4.25and the market risk premium is 5.50 what is the required rate of return?
4.25 + 1.4(5.5) = 11.95 = required rate of return the correct answer is: 4.25 + 1.4 (5.50-4.25) = 21.75
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.
Increase in expected growth rate does what to required return rate?
An increase in a firm's expected growth rate would normally cause its required rate of return to
Does the capital asset pricing model help us to get required rate of return or expected rate of return?
expected rate of return
What is the difference between the required rate of return and the expected rate of return in investment analysis?
The required rate of return is the minimum return an investor needs to justify the risk of an investment, while the expected rate of return is the return that an investor anticipates receiving based on their analysis of the investment's potential performance.
How does the cost of debt differ from the required rate of return for bondholders?
Question 4 How does the cost of debt differ from the required rate of return for bondholders?
How does cost of debt differ from the required rate of return for bondholders?
Question 4 How does the cost of debt differ from the required rate of return for bondholders?
Relationship btwn an investor's required rate of return and value of security?
Relationship btwn an investor's required rate of return and value pf security
What is the relationship between wacc and discount rate of return?
relationship between WACC and required rate of return.
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?
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?
If beta coefficient is 1.4 and the risk free rate is 4.25 and the market risk premium is 5.50 what is the required rate of return?
Require Rate of Return is formulated as: Riskfree Rate + Beta(Risk Premium) Required Rate of Return = 4.25 + 1.4 (5.50) = 11.95%
What is the value for 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.
If beta coefficient is 1.4 and the required rate of return is 12.10 and market return is 9.5 what is the risk free rate?
13.3
