No, CAPM is a formula used to calculate the cost of equity—the rate of return a company pays to equity investors. For ...
Q. I have prepared projections for a proposed project, and I want to calculate the internal rate of return. Instead of using Excel’s IRR function, should I use simple math formulas so others can ...
Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...
Excess return refers to the return on an investment that surpasses the return of a benchmark or a risk-free rate. It measures the performance of an investment in relation to its expected or required ...