Hurdle rate

Hurdle rate — the return your best available boring alternative already pays, which any proposed investment must clear (net of tax, fees, and effort) before it deserves capital. This course runs two: MP2’s tax-free dividend for peso-yield money, and a broad global index fund’s ~7–9% expected total return for growth money. Anything that clears neither is a hobby.

First used in: 1.1 · The two hurdles: benchmarking math I