Question

One way to think about the required rate of return is:
as the highest return a risk-averse investor wants from an investment. as the risk-free rate of return plus a risk premium. as the historical rate of return plus a risk premium. as a comparison between the expected and historical rates of return

Answers

A. as the highest return a risk-averse investor wants from an investment.

B. as the risk-free rate of return plus a risk premium.

C. as the historical rate of return plus a risk premium.

D. as a comparison between the expected and historical rates of return
Ms. Sue
What do you think?

http://www.investopedia.com/terms/r/requiredrateofreturn.asp

I think that it is B the risk rate of return plus a risk premium
Ms. Sue
I agree.

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