If the expected rate of return on an investment is 10% and the market interest rate is 12%, then the investment will be undertaken.

Name: If the expected rate of return on an investment is 10% and the market interest rate is 12%, then the investment will be undertaken.
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Question

Quizplus · Accepted Answer

The expected rate of return on the investment is lower than the market interest rate, so the investment will not be undertaken as it does not offer a desirable return compared to other investment opportunities available in the market.

If the Expected Rate of Return on an Investment Is