The required rate of return is the payment demanded by the investors for foregoing their ability to use the funds themselves.

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The required rate of return is the minimum return that an investor expects to receive for investing their money, compensating them for the time value of money and the risks associated with the investment. It is a measure of the opportunity cost of investing in a particular security or project, as investors could choose to invest their money elsewhere or use it for other purposes if they were not invested in that security or project.

The Required Rate of Return Is the Payment Demanded by the Investors