Nepra's concept paper on 'Determination of Rate of Return for Power Sector' drafted in November 2016 said, 'The IRR (internal rate of return) offered by regulator must be more tailored towards improving the energy mix that is more reflective of a country's available natural resources and macro-economic conditions.

The results of such comparisons form the basis for the required rate of return for the residual uncertain discounted cash flow we have used in the calculation example.

where [R.sub.m] -r is the market risk premium, [[beta].sub.i] = Cov([[??].sub.m],[[??].sub.i])/[[sigma].sup.2.sub.m], Cov(.,.) is the covariance operator, [[omega].sub.m] is the market portfolio, [R.sub.m] is the expected rate of return on the market portfolio, with [[??].sub.m] = [[omega].sub.m.sup.T] [??] , and [[sigma].sub.m.sup.2] is the variance of the market portfolio rate of return.

The former will generate the most volatile rates across different asset types, while the latter, by definition, will produce the same rate of return to capital for all assets.

In case 3 years after every of the three tranches RusHydro share price is less than R1.65 ($0.06) plus rate of return required by VEB, VEB will be able to claim additional shares from RusHydro.

Chow and Lawler (2003) analyzed the price index for the Shanghai Stock Exchange in comparison with the New York Stock Exchange Index in terms of its rate of return, volatility and structural changes in the movement of the index up until 2002.