The minimum net yield is not the demanded net yield of an investment project, below those an investor an investment transacts.

Are to be differentiated from each other:

• the minimum net yield for a concrete investor and a concrete investment project,
• the minimum net yield over all investors,
• the minimum net yield over all investment projects.

Factors of influence

Crucially for the minimum net yield is in particular, which disadvantages the investor to suffer has, if he does not invest, thus its money otherwise or does not put on at all.

• Risk premium: If the regarded investment project has a higher risk than other investment projects, then the investor for this investment project will require a higher (Mindest) net yield.
• Liquidity premium/more exactly: Liquidity renouncement premium: The investor cannot have his money at run time the investment project, this lets he be paid.
• Inflation compensation: The expected inflation of the repayment currency calculates the investor from the outset likewise also and adds the appropriate percentage on the minimum net yield.

Not to the minimum net yield belongs:

• All potential investment projects compete around investor funds. The most lucrative, most profitable are considered as measuring pole to all different. If the investor invests into the regarded investment project and not into the most lucrative, then profits, which are called escape him.

Note: Free economics intended to lower with free money suggested of their the liquidity premium mentioned above and concomitantly the minimum net yield.

See also

• Investment neutrality

Articles in category "Minimum net yield"

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Related Websites

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• People's Securities - Investments - High Yield Accounts
  ... subject to the federal alternative minimum tax and state and local taxes). ... 1 The 7-day net annualized yield is based on the average net income per ...


• People's Securities - Investments - High Yield Accounts
  ... subject to the federal alternative minimum tax and state and local taxes). ... 1 The 7-day net annualized yield is based on the average net income per ...


• The Death Star
  Therefore, the surface escape velocity method yields a minimum energy estimate of 3.7E32 joules. ... they all yield results in the same order of magnitude. ...