The minimum return that will make an investment acceptable to an investor is called:
A)the required rate of return.
B)the risk premium.
C)the risk-free interest rate.
D)beta.

Question

Quizplus · Accepted Answer

The required rate of return is the minimum return that an investor expects to receive on an investment in order to compensate for the time value of money and the risk involved. It is also known as the hurdle rate or the minimum acceptable rate of return.

The Minimum Return That Will Make an Investment Acceptable to an Investor