What is investor's required rate of return?

1 answer

Answer

1242595

2026-07-23 17:25

+ Follow

An investor's required rate of return is the minimum return that an investor expects to achieve from an investment, considering its risk level. It serves as a benchmark for evaluating the attractiveness of an investment compared to alternative options. This rate often incorporates factors such as the risk-free rate, the investment's risk premium, and market conditions. Investors use it to determine whether the potential returns justify the risks involved.

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.