Definition Required Rate of Return. Description.
Required Rate of Return is the minimum profit percentage an
investor requires before he is willing to provide the funds for investing.
Often, the RR of R is based on the firm's
cost of capital or
weighted average cost of capital, plus or
minus a risk premium to reflect the specific risk characteristics of the investment.
The expected return must be greater than the required return
for the investment to be acceptable.
Also called "Hurdle Rate".
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Required Rate of Return Special Interest Group
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Compare with: WACC |
Internal Rate of Return |
Net Present Value
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Required Rate of Return Sponsor
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Special Interest Group Leader
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