# Required Rate of Return: Definition and Examples.

The Required Rate of Return (RRR) is the minimum return that an investor must receive in order to compensate for the risks involved in an investment. What year is RRR set in? The film RRR is set in the year 1920.

### Why is RRR important?

The RRR, or the reserve requirement ratio, is the percentage of deposits that banks are required to hold in reserve at the central bank. The central bank uses the RRR to control the money supply and inflation in an economy. A higher RRR means that there is less money available for lending, and vice versa.

The RRR is an important tool for central banks because it allows them to influence the money supply without changing interest rates. By changing the RRR, the central bank can encourage or discourage lending, and thus help to keep the economy stable.

#### What is the ending of RRR?

At the end of RRR, the protagonist, Robert, finally overcomes his fear of flying and boards a plane. He is accompanied by his wife and daughter, who have been supportive throughout his journey. As the plane takes off, Robert's daughter tells him that she is proud of him and he smiles. The film ends with the family embracing and Robert looking out the window at the clouds, finally at peace.

What is an example of required rate of return? The required rate of return (RRR) is the minimum rate of return that a project must earn for an investor to consider it worthwhile. The RRR is used to discount future cash flows from a project in order to arrive at its present value.

For example, let's say an investor is considering a project that will cost \$100,000 today and is expected to generate cash flows of \$10,000 per year for the next 10 years. If the investor's required rate of return is 10%, then the present value of the project's cash flows would be \$100,000.

To calculate the present value, the investor would discount each of the project's future cash flows by 10%. So, the first year's cash flow of \$10,000 would be worth \$9,091 today (i.e. \$10,000 / (1 + 10%)), the second year's cash flow would be worth \$8,264 today, and so on.

The required rate of return is a critical input in any financial analysis because it directly impacts the present value of a project's cash flows. A higher required rate of return will result in a lower present value, all else being equal. What does RRR mean in text? The term "RRR" stands for "risk-reward ratio". It is a concept used by investors to evaluate the potential return of an investment against the amount of risk involved. The higher the RRR, the more attractive the investment.