Required Rate Of Return The rate of return needed to induce investors or companies to invest in something. Investopedia Says: For example, if you invest in a stock, your required return might be 10% per year. Your reasoning is that if you don't receive 10% return, then you'd be better off paying down your outstanding mortgage, on which you are paying 10% interest. Related Terms: Expected Return Hurdle Rate Inflation-Adjusted Return Return |