To determine the benchmark, it is not unusual for the business to look at the current rate of return in a securities market, identifying what amount of return could be reasonably anticipated if the assets needed for the project were invested in the market instead. After the benchmark is ...
The accounting rate of return is a simple calculation that does not require complex math and allows managers to compare ARR to the desired minimum required return. For example, if the minimum required return of a project is 12% and ARR is 9%, a manager will know not to proceed with the ...
In theory, the risk-free rate is the minimum return an investor expects for any investment. Investors will not accept additional risk unless the potential rate of return is greater than the risk-free rate. If you are finding a proxy for the risk-free rate of return, you must consider the...
C. Cannot be determined without the risk-free rate. 正确答案:B 分享到: 答案解析: The expected return of a stock with a beta of 1.0 must, on average, be the same as the expected return of the market which also has a beta of 1.0. 统计:共计12人答过,平均正确率83.33% 问题:进入...
A fair rate of return may need to account for shareholder benefits commensurate with those seen in shares with similar companies. Utility shares tend to pay out below the rate of the rest of the market, but offer more stable and reliable investments because they are less prone to volatility....
What is the required rate of return for a stock with a beta of 1.4, when the risk-free rate is 5% and the market is offering 8% A. 9.2% B. 10.3% C. 15.2% 如何将EXCEL生成题库手机刷题 如何制作自己的在线小题库 > 手机使用 分享 反馈 收藏 举报 参考答案: A 复制 纠错 举一...
What is the interest-free internal rate of return? Interest-free Internal Rate of Return: Internal rate of return entails the way investors gauges the earnings to be realized from a given business venture when they get involved in it within a given period. The profits are subject to the cash...
但需要注意,在实际交易中,实值期权(in-the-money options)的交易通常非常不活跃,使得其价格往往滞后、不准确。因此,为了更准确地进行估计,根据期权的看跌-看涨平价关系(put-call parity),用对应的虚值看跌期权(out-of-the-money put)替换实值看涨期权。特别地,put-call parity 意味着: ...
What rate of return do you expect to earn? Is internal rate of return annualized? What is the real interest rate? What is effective interest rate in finance? What is annual percentage yield? If you invest $23,000 in a stock market index that earns 15.40% returns annually, how much ...
The Internal Rate of Return (IRR) is the rate at which an investment grows in value during the time it is held. It represents the implied rate of return on each invested dollar over the entire holding period.