A hurdle rate is the rate of return set by applying ideal standards.

Name: A hurdle rate is the rate of return set by applying ideal standards.
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A hurdle rate is the minimum required rate of return that must be achieved in order to justify an investment. It is generally set based on the cost of capital or the expected return on alternative investments with similar risk profiles. There is no one "ideal" standard for setting a hurdle rate.

A Hurdle Rate Is the Rate of Return Set by Applying