The risk-free rate of return reflects three core components theoretically: Calculating return is crucial for understanding the performance of an investment. A commonly used formula is the return ...

The Excel formula for calculating the discount rate is =RATE ... with an IRR of 57% using a hypothetical outlay, our WACC risk-free rate, and expected after-tax cash flows. We’ve already ...

To calculate the Sharpe ratio, you first need your portfolio's rate of return. Next, you need the rate of a risk-free investment, such as Treasury bonds. Subtract this risk-free rate from your ...