Sfm little doubt

Khushboo Goyal (Working) (342 Points)

14 May 2013  

Hello Friends,

I have a small doubt in SFM. What is the difference between "Required Rate of Return, Available Rate of Return and Market Rate of Retun'?

According to me, Required Rate is that rate which investor wants to earn.

Available Rate is that rate which is actually provided by the co.

But What is Market Rate/Return? Is it available rate in the market or required rate in the market?

Please clarify me.

Thanks and Regards

Khushboo Goyal