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Required Return

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Required return
The minimum expected return you would need in order to purchase an asset, that is, to make the investment.

Required Rate of Return
In securities, the minimum acceptable rate of return at a given level of risk. Different investors have different reasons for choosing their required returns. Normally, it is determined by a person's or institution's cost of capital. For example, an investor may also carry a debt with a high interest rate; if an investment does not meet a required rate of return, it would make more sense for the investor to pay down his/her debt. The required return is also related to the amount of risk an investor is willing to accept. One with a portfolio consisting largely of bonds will generally have a lower required return than one whose portfolio contains mainly stocks. See also: Markowitz Portfolio Theory.


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[GRAPHIC OMITTED] THE REQUIRED RETURN This is one of the most important questions you will answer.
There is no fee, except for any required return postage.
The economic value added is utilized in corporate finance to determine the value being created beyond the required return.
 
 
 
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