Which of the following performance measures will decrease if the minimum required rate of return increases?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Which of the following performance measures will decrease if the minimum required rate of return increases? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

The minimum required rate of return is the minimum amount an investor expects to earn on an investment. If this rate increases, it becomes more difficult for the investment to meet the requirement, leading to a lower return on investment (ROI). Therefore, performance measure B, which is ROI, will decrease. A, C, and D are not directly affected by the minimum required rate of return.

Which of the Following Performance Measures Will Decrease If the Minimum