Hurdle Rate
The minimum rate of investment that is acceptable to an investor. It is also used in the context of achieving a certain rate before other events can take place.
hurdle rate
A target rate. For example, companies may decide to invest only in projects that generate an internal rate of return that is in excess of 12%. The 12% figure becomes the hurdle rate.
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Hurdle Rate
In Russell Style Classification (RSC), the return rate below which lies the down side for return analytics calculations. The hurdle rate is usually set to zero.
hurdle rate
term used in capital budgeting. Hurdle rate is the required rate of returnon a long-term investment opportunity. A proposal would be accepted when the expected rate of return exceeds the hurdle rate.
Definition of
hurdle rate
1. Banking
rate above which loan is profitable for bank a minimum rate of return needed by a bank to fund a loan, representing the rate below which a loan is not profitable for the bank ...
HURDLE RATE - a term used in the budgeting of capital expenditures meaning the REQUIRED RATE OF RETURN ...
HURRICANE BOND - A form of Catastrophe Bond (q.v.), where the catastrophe is a hurricane. (Source: Soph...
ETF Hurdle Rate
An ETF's hurdle rate is the sum of its portfolio's weighted-average cost of equity (COE), its annual expense ratio and, in certain cases, an incremental risk premium.
Hurdle Rate
Term used in capital budgeting to refer to the minimum required expected rate of return necessary to proceed with an investment.
Hypothecation ...
Hurdle Rate - The minimum amount of return that a person requires before they will make an investment in something.
Hurdle rate: A targeted rate of return set by senior management to communicate to managers in the company the criterion by which to accept or reject a capital project proposal.
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Hurdle rate
The required return in capital budgeting.
Immunization strategy ...
hurdle rate In investment management, a provision that incentive fees will be paid only for returns exceeding some specified level.
hybrid instrument A financial instrument that blend characteristics of debt and equity markets.
Hurdle rate - Used in capital budgeting, it means the required rate of return of a discounted cash flow analysis. If the expected rate of return on a particular investment is below that of the hurdle rate, then the project will not begun.
Hurdle rates
Some managers specify a hurdle rate, signifying that they will not charge a performance fee until the fund's annualized performance exceeds a benchmark rate, such as T-bill yield, LIBOR or a fixed percentage.
Hurdle Rate: A minimum acceptable internal rate of return (IRR). Projects generating returns in excess of the corporate hurdle rate are viable candidates for implementation.
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Hurdle rate
The hurdle rate is the minimum acceptable rate of return on an investment.
Hybrid financial instrument ...
The hurdle rate is usually determined by evaluating existing opportunities in operations expansion, rate of return for investments, and other factors deemed relevant by management.
security market line The relationship between an investment's hurdle rate and its market risk. SEDOL Acronym for The Stock Exchange Daily Official List number, which refers to a...
It is a proportion of returns above a hurdle rate.... Carrier pre-select A regulator imposed system that allows customers of an incumbent telecoms network to choose to route all their calls through another network....
Used as a hurdle rate for capital investment. Often the weighted average of the cost of equity and the cost of debt The weights are determined by the relative proportions of equity and debt in a firm's capital structure.
Used as a hurdle rate for capital investment. Weighted average coupon The weighted average of the gross interest rate of the mortgages underlying the pool as of the pool issue date, with the balance of each mortgage used as the weighting factor.
The risk-adjusted return on capital is usually compared to a standard or hurdle rate of return.
The Required Rate of Return that must be paid or received by all of the investors with respect to a company's securities. Used as a hurdle rate for capital.
The required return in capital budgeting. For example, if a project has an expected rate of return higher than the hurdle rate, the project may be accepted.
Hurst Exponent(H) ...
Finally, the 10% rate is an arbitrary hurdle rate. Selecting an alternative rate will change the measure of residual income.
For each source, a borrowing rate could be computed, and a composite rate calculated. Such calculations are a subject for a finance course; for our purposes, we will treat the cost of capital, or "hurdle rate" as a given.
Hung up Used to describe the position of an investor whose stocks or bonds have dropped in value below their original purchase price. Hunkering down A term used to describe a trader selling off a big position in a stock. Hurdle rate The ...
 See also: Banks, Internal rate of return, Capital budgeting, Capital budget, Expected return
  
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