Cutoff point

The lowest rate of return acceptable on investments.

Cutoff Point

The required rate of return needed to make an investment worth the expense. The cutoff point is subject and varies from investor to investor. However, in general, cutoff points vary by risk. That is, the cutoff point is almost higher for a riskier investment, meaning that the investor will not invest in a risky venture that is unlikely to have a high rate of return. Some investors adopt cutoff points as their personal investment policies, while others decide based on the situation.

单词	cutoff point
释义	cutoff point Translations cutoff point cutoff point [′kət‚ȯf ‚pȯint] (mechanical engineering) The point at which there is a transition from spiral flow in the housing of a centrifugal fan to straight-line flow in the connected duct. The point on the stroke of a steam engine where admission of steam is stopped. Cutoff point Cutoff point The lowest rate of return acceptable on investments. Cutoff Point The required rate of return needed to make an investment worth the expense. The cutoff point is subject and varies from investor to investor. However, in general, cutoff points vary by risk. That is, the cutoff point is almost higher for a riskier investment, meaning that the investor will not invest in a risky venture that is unlikely to have a high rate of return. Some investors adopt cutoff points as their personal investment policies, while others decide based on the situation.
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