The required rate of return on an asset is NOT a function of the ____.
A) risk associated with the asset
B) risk-free interest rate
C) age of the asset
D) All of these are correct

Question

Quizplus · Accepted Answer

The age of the asset is not a determinant of the required rate of return. The required rate of return is primarily determined by the level of risk associated with the asset and the risk-free interest rate in the economy.

The Required Rate of Return on an Asset Is NOT