How It Works Hypothetically, investors should always be able to invest in government bonds and obtain a risk-free rate of return. The Sharpe ratio determines the expected realized return over that ...

IRR is most often used in conjunction with hurdle rate — or the minimum return an investment needs to bring in. Many companies use their weighted average cost of capital (WACC) as their base ...

The weighted average cost of capital (WACC) is a measure of the average rate of return that a company is expected to pay to its investors to finance its assets. The WACC takes into account the ...