Required Return

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What is Required Return? Meaning.

Required Return is the minimum expected return which is required from an investment to decide to go ahead with it.

It is the minimum return required by investors to compensate them for assuming the risk that is associated with an investment. Normally it is expressed as a percentage.

For example, if you invest in a security X, your may want a return of 9% per year, because you believe that if you don't receive 9% return, then you'd be doing something else with your money, like buying a new stereo or an alternate security Y with a lower perceived risk or with a higher potential return.

Information Sources Sign up Various sources of information regarding Required Return. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops. Analyzing Financial Feasibility Financial Feasibility Analysis, Project Selection, ROI, NPV, IRR Presentation about Feasibility Studies in the Financial Area. The presentation includes the following sections: 1. Fina (...)

Compare with: WACC  |  Internal Rate of Return  |  Net Present Value  |  Feasibility Study  |  Credit Risk Management  |  Strategic Risk Management  |  Credit Rating  |  Value at Risk  |  Required Rate of Return

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