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Required Rate of Return is the return that investors will expect to earn on their money, given the risk and costs involved.
Required Rate of Return is determined by the market for a particular security or asset at a given time. Issuers of fixed or variable coupon bonds must look at the rates offered by their peer institutions with similar credit ratings.
Investors will require a certain rate of return if they are going to invest their money, and this is where the RRR gets its name. The calculations which help an issuer to arrive at the RRR will include the current risk-free rate (10 year treasury bond rate), liquidity, inflation, and so on.
The RRR is also known as the cost of capital (CoC) or the weighted average cost of capital for a company, because the RRR is the cost of raising capital by enticing investors.
A commodity is usually a raw material or agricultural good with high demand and little price difference between competitors
Value Stock is a stock whose price has been deemed a value buy because of fundamentals, book value, and projected earnings
The Pink Sheets used to be printed on pink paper and contained the bid and ask prices of penny stocks
A 403(b) Plan is essentially a 401(k) for publicly-funded institutions such as public schools and universities
As a general rule, it is wise to have Life Insurance when you are a main source of income for your family
The suitability standard states that a broker-dealer is obliged to make recommendations that are suitable for their clients
The Dividend Payout Ratio represents the percentage of a company’s earnings/profits that they pay-out to shareholders
Adaptive selling is a marketing principal where the product or services offered are modified based on the demographics
Like a currency or interest rate swap, a commodity swap is a contractual agreement to trade one cash flow for another
The Herrick Payoff Index is one of the only indicators to combine price, volume, and open interest data for analysis