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
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
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
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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