Required Rate of Return

(redirected from RRR)
Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.

Required Rate of Return (RRR)

The minimum expected yield by investors require in order to select a particular 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.

required rate of return

1. The minimum rate of return that an investment must provide or must be expected to provide in order to justify its acquisition. For example, an investor who can earn an annual return of 11% on certificates of deposit may set a required rate of return of 15% on a more risky stock investment before considering a shift of funds into stock. An investment's required return is a function of the returns available on other investments and of the risk level inherent in a particular investment.
2. The minimum rate of return required by an investor, a stipulation that limits the types of investments the investor can undertake. For example, a person with a required rate of return of 15% would generally have to invest in relatively risky securities.
References in periodicals archive ?
While it is possible to obtain an estimate for RRR for superconducting samples, we need to acknowledge the fact that RRR estimates are model-dependent extrapolations used to predict a value that does not exist.
3) were within a narrow range for samples with typical RRR values.
In past interlaboratory comparisons, differences in RRR between laboratories have been as large as 10 %, and participating laboratories were required to measure RRR with a relative standard uncertainty of less than 5 % of the measured value (6).
0] estimated from the T = 4 K magnetoresistance curve is the parameter needed to compute RRR.
Our measurement system is capable of producing data over a wide range of temperatures and fields, so we performed an analysis to investigate the sensitivity of the model and the resulting estimates of RRR when various subsets of the data were used in the model fit.
RRR values for sample #13 based on the modified Kohler model for various data trimming scenarios.
As a result, Chinese commercial banks can operate longer with a higher RRR than their counterparts elsewhere.
The central bank announced its first cut in RRR in three years on Nov.
Investors had expected another RRR cut ahead of the Chinese Lunar New Year in late January, but they were wrong-footed as the central bank opted for open market operations to provide short-term cash for banks.
We still see four more RRR cuts in the remainder of the year," said Shen Lan, an economist at Standard Chartered Bank in Shanghai.
Under the scheme of RRR of water bodies with domestic support, a total of 1592 water bodies were taken up for restoration in 10 states during 2010-11 and 2011-12 of XI Plan.
10,000/- per weaver besides extending the implementation of RRR package upto 31.