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Required rate of return (See Chapters 19 and 22 of the Vernimmen)
Required rate of return is the rate of return the providers of funds can reasonably ask for given the level of risk of the project, company, venture, etc, they invest in. According to the CAPM (see this term), the required rate of return is equal to: risk-free rate + ? (beta) x market risk premium.
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Required rate of return (See Chapters 19 and 22 of the Vernimmen)
Required rate of return is the rate of return the providers of funds can reasonably ask for given the level of risk of the project, company, venture, etc, they invest in. According to the CAPM (see this term), the required rate of return is equal to: risk-free rate + ? (beta) x market risk premium.
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