Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...
No, CAPM is a formula used to calculate the cost of equity—the rate of return a company pays to equity investors. For ...
Excess return refers to the return on an investment that surpasses the return of a benchmark or a risk-free rate. It measures the performance of an investment in relation to its expected or required ...
Net Internal Rate of Return (Net IRR) reveals the profitability of investments by considering fees, costs, and carried ...
Real rate of return adjusts for inflation, providing a true growth measure. S&P 500's real rate is 7.9%, versus a nominal 11.8%, due to inflation. Using real rates in retirement planning ensures ...