An investment should be undertaken if the market rate of interest exceeds the rate of return that can be earned on the investment.

Question

Quizplus · Accepted Answer

An investment should only be undertaken if the rate of return that can be earned on the investment exceeds the market rate of interest. Otherwise, the investor could earn a higher return by simply placing their money in a savings account or other low-risk investment.

An Investment Should Be Undertaken If the Market Rate of Interest