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hurdle rate definition pepe unchain Bnb Eth XRP crypto futures coinbase futures binance futures

What is a hurdle rate and why is it important?

By exhibiting responsible financial management and decision-making, establishing a transparent and well-defined hurdle rate increases stakeholder confidence. It builds confidence among lenders, investors, and other stakeholders by encouraging accountability and openness in the investment process.

What is a hurdle rate & how does it affect investments?

Hurdle rates can favor investments with high rates of return even if the dollar amount of the return is very small, for instance, and they can reject larger projects even though they may generate more cash for the investor. Thus, a $1 investment returning $3 will look more favorable than a $1 million investment returning $2 million.

What does it mean if a return is higher than the hurdle rate?

If the actual returns are higher than the hurdle rate, the investment has done well and met or surpassed expectations. On the other hand, if the real returns are less than the hurdle rate, it can indicate that the investment was not as profitable as expected. 5. Strategic Alignment

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Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

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