The required rate of return depends on an investor's tolerance for risk. Investors rely on the market's risk-free rate of return, the volatility of a stock, or the overall cost of funding a project.

The required rate of return (RRR), also known as the hurdle rate, is a financial metric that helps investors assess whether a potential investment is worth the risk compared to other opportunities.

Take a look at the primary differences between an investor's required rate of return and an issuing company's cost of capital.

Whether you are considering buying or selling, understanding the potential or actual annual rate of return of a preferred stock investment is important to ...

Factors That Determine Your Rate of Return in Retirement Your rate of return is also subject to factors beyond taxes, fees, and inflation. They vary due to individual circumstances and preferences.

Many stock investments, in particular, are designed to produce a combination of income and capital gains. Total return combines these two types of investment returns into a single metric.

Gordon Growth Model calculates stock value based on future dividends with steady growth. Inputs: current dividend, expected growth rate, required return rate. Effective for long-term investments ...

Return on equity, abbreviated as ROE, and internal rate of return, or IRR, are both figures that describe returns that can impact a shareholder's investment.

The stock market has built wealth for generations. What has it returned over the long term?

Return on equity, often abbreviated as ROE, is a financial metric used to judge the strength of a business by answering this key question: How much.

Discover the historical average stock market return and what factors influence it. Learn what to expect for stock market performance in 2025 and beyond.