The required rate of return is the acceptable percentage return on an investment after taking into account the _ of the investment.

Question

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The required rate of return is the minimum acceptable percentage return on an investment after taking into account the risk of the investment. Option B is incorrect because achieving maximum returns is not the objective of the required rate of return. Option C is incorrect because opportunity cost refers to the benefits foregone from choosing one investment over another, and it is not a factor in determining the required rate of return. Option D is incorrect because the required rate of return takes into account the minimum return necessary to compensate for the risk taken on.

The Required Rate of Return Is the Acceptable Percentage Return