Required return

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.
References in periodicals archive ?
6651(a) penalty for a complete failure to file a required return.
The investor required return equals the portfolio's 5% coupon, which is highly unlikely and inconsistent with the assertion that the TruP CDO portfolio had little or no value as of 2010.
My (very) basic understanding of 'economic value added' as a concept is that it is the value created in excess of a required return.
25 percent divided by 6 percent) to restore the 6 percent required return.
If you failed to file a required return, the good faith exception does not apply and there is generally no limit on the time the states can take to track you down.
These plans will usually run for five years so you will have five anniversaries to achieve the required return.
While 74% of respondents confirmed that their companies are "most of the time" getting the required return on IT spent in the form of increased efficiencies, customer satisfaction, etc.
When a required return is not filed, the FTB issues a tax assessment using income records to estimate the amount of state tax due.
However, in light of the higher risks in the sector appearing in the run up to the elections and the potential revision of already approved tariffs, we expect elevated volatility in the sector; although this should be compensated for by a higher required return on investments for generation companies.
It follows that the required return for an undiversified investor is that which makes them indifferent between allocating their funds in the conventional Tobin (1958) fashion between the market portfolio and the risk-free rate or the undiversified asset.
Required return to equity = Return on long-term treasury bonds + Risk premium

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