As the required rate of return of an investment decreases,the market price of the investment decreases.

Question

Quizplus · Accepted Answer

The market price of an investment is determined by various factors such as supply and demand, company performance, market conditions, etc. The required rate of return is one of these factors but not the only determining factor. Therefore, a decrease in the required rate of return may not necessarily result in a decrease in the market price of the investment.

As the Required Rate of Return of an Investment Decreases,the