If the expected rate of return on an investment is 7% and the market interest rate is 5%, then the investment will be undertaken.

Question

Quizplus · Accepted Answer

If the expected rate of return on an investment is higher than the market interest rate, then the investment is considered profitable and will likely be undertaken. In this case, the expected rate of return (7%) is greater than the market interest rate (5%), indicating that the investment is attractive and should be pursued.

If the Expected Rate of Return on an Investment Is