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#207 – What Are the Disadvantages of Hurdle Rate?

Strategic Treasurer

What Are the Disadvantages of Hurdle Rate? Investments require a certain minimum rate of return to make them worthwhile. On this podcast, Craig Jeffery and Paul Galloway continue their discussion on investment returns with a specific look into Hurdle Rate. Treasury Technology Analyst Report. Episode 207.

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The Hype Cycle, Expertise & Dunning Kruger

Barry Ritholtz

Whenever a truly new and innovative technology comes along, there are a tiny number of people who have actual expertise in the space. Where the DK/GHC really overlap is when a new product has a low hurdle rate. I suspect the nexus between them is based on subject matter expertise. See footnote 2, here.

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Musings on Markets: Data Update 5 for 2022: The Bottom Line!

CFO News Room

Real estate and utilities are the two sectors that have not come back fully from the COVID effect, but materials, technology and communication services are now reporting significantly higher earnings that before the shut down.

Marketing 130
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Data Update 4 for 2024: Danger and Opportunity - Bringing Risk into the Equation!

Musings on Markets

In particular, there are wide variations in how risk is measured, and once measured, across companies and countries, and those variations can lead to differences in expected returns and hurdle rates, central to both corporate finance and investing judgments. What's coming?

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Data Update 5 for 2022: The Bottom Line!

Musings on Markets

Real estate and utilities are the two sectors that have not come back fully from the COVID effect, but materials, technology and communication services are now reporting significantly higher earnings that before the shut down. I will use this data to draw three broad conclusions: Low Hurdle Rate ?

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Data Update 5 for 2024: Profitability - The End Game for Business?

Musings on Markets

In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital.

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Risk = Danger + Opportunity!

CFO News Room

Risk and Hurdle Rates In investing and corporate finance, we have no choice but to come up with measures of risk, flawed though they might be, that can be converted into numbers that drive decisions. In corporate finance, this takes the form of a hurdle rate , a minimum acceptable return on an investment, for it to be funded.