Question

The minimum rate of return an investor must receive in order to accept an investment is best described as the:

A. internal rate of return.

B. required rate of return.

C. expected return.

Answer = B

The required rate of return is the minimum rate of return an investor must receive in order to accept an investment.

CFA Level I

"The Time Value of Money," Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, and David E. Runkle

Section 2

 

 

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