The cap rate represents the expected or required rate of return on the property. (valuepenguin.com)
Whereas a profit center simply measures the overall contribution of a division's profitability to the parent corporation, an investment center measures all uses of capital against a theoretical required rate of return. (thebalance.com)
Beta is the brainchild of CAPM, which is designed to determine a theoretically appropriate required rate of return of any investment and compare the riskiness of an investment to the risk of the market. (portfoliosolutions.com)