The required rate of return is payment demanded by the investor for foregoing present consumption.

Name: The required rate of return is payment demanded by the investor for foregoing present consumption.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The required rate of return is an investor's expected return on an investment given the amount of risk taken. It is the minimum return an investor expects to receive in order to compensate for giving up the opportunity to spend the money today. Therefore, the statement is true.

The Required Rate of Return Is Payment Demanded by the Investor