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required rate of return |
Also found in: Acronyms, Wikipedia | 0.03 sec. |
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Required Rate of Return The rate of return needed to induce investors or companies to invest in something. Notes: For example, if you invest in a stock your required return might be 10% per year. Your reasoning is that if you don't receive 10% return, then you'd be better off paying down your outstanding mortgage that you are paying 10% interest on.Required Rate of Return (RRR) The minimum expected yield by investors require in order to select a particular investment.
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