The required charge of return (RRR) is the minimal return an investor will take delivery of for proudly owning a company's stock, as compensation for a given level of threat associated with protecting the stock.
The required rate of return is used as the cut price price for future cash flows to account for the time fee of money. A dollar these days is well worth greater than a dollar tomorrow due to the fact a dollar can be put to use incomes a return.
A return, additionally acknowledged as a economic return, in its simplest terms, is the cash made or misplaced on an investment over some length of time. A return can be expressed nominally as the alternate in dollar fee of an investment over time.
Learn more about fund's required rate of return here:
