The difference between the required return. The Required Rate of Return : The required rate of return is the rate, which should be minimum earned on an investment to keep that investment running in the market. When the required return is earned only then the users and the companies invest in that particular investment.

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Chapter 8, Problem 10P

Summary Introduction

To determine: The difference between the required return.

The Required Rate of Return:

The required rate of return is the rate, which should be minimum earned on an investment to keep that investment running in the market. When the required return is earned only then the users and the companies invest in that particular investment.

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