The required rate of return on an asset is a function of the .
A)risk associated with the asset
B)risk-free interest rate
C)age of the asset
D)risk associated with the asset and the risk-free interest rate

Question

Quizplus · Accepted Answer

The required rate of return on an asset is determined by both the risk-free interest rate and the risk associated with the asset, as it compensates investors for the time value of money and the risk taken.

The Required Rate of Return on an Asset Is a Function