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Q: Can required rates of return be negative?
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Explain why a characteristic of an efficient market is that investments in that market have zero NPVs?

On average, the only return that is earned is the required return-investors buy assets with returns in excess of the required return (positive NPV), bidding up the price and thus causing the return to fall to the required return (zero NPV); investors sell assets with returns less than the required return (negative NPV), driving the price lower and thus the causing the return to rise to the required return (zero NPV).


Why is cost associated with internal equity?

nIf managers are investing shareholders' funds, shareholders will expect to earn their required rate of return nFor internal equity, the required rates of return are equivalent to the cost as no issue costs are involved


What happens when you get negative market returns can you use that to compute the required rate of return using CAPM?

A negative market return means that there has been a loss on investments because stocks have gone down. CAPM is a model that describes the relationship between risk and expected return and could be used to try to foresee negative market returns.


Why do bond investors have lower required rates of return than do stock investors?

They take less risk, theoretically, so they have lower expectations.


Is it possible to construct a portfolio of real world stocks that has a required return equal to the risk free rate?

yes


What is the current population of Eastern Europe?

Negative


Rate of deceleration are always expressed as?

Rates of deceleration are always expressed as negative numbers.


What are the rates for ira cd?

IRA CD rates can vary depending on your bank. It is best to shop the rates online to get the max return.


How can you have a negative real rate of return over the same period?

If the rate of inflation exceeds the nominal rate of return during the period in question, then the real rate of return can be negative.


How does a change in the required rate of return affect project's Internal Rate Of Return?

A change in the required rate of return will affect a project's Internal Rate of Return (IRR) by potentially shifting the project's feasibility. If the required rate of return increases, the project's IRR needs to be higher to be considered acceptable. Conversely, a decrease in the required rate of return could make the project's IRR more attractive.


What is negative boosters used in traction?

negative boosters are used in the return path of traction system It is to decrease the voltage of the return path and to ensure that the return path voltage is much closer to ground potential


Are money markets securities characterized by low rates of return?

yes