How to compute market rate of return
How to Calculate the Required Rate of Return? There are different methods of calculating a required rate of return based on the application of the metric. One of the most widely used methods of calculating the required rate is the Capital Asset Pricing Model r m – return of a market Formula to Calculate Real Rate of Return. The real rate of return is the actual annual rate of return after taking into consideration the factors that affect the rate like inflation and this formula is calculated by one plus nominal rate divided by one plus inflation rate minus one and inflation rate can be taken from consumer price index or GDP deflator.