One way to think about the required rate of return is:

Question

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

Answer 1

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

Answer 2

What do you think?

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

Answer 3

I think that it is B the risk rate of return plus a risk premium

Answer 4

I agree.