Which one of the following is the minimum required rate of return on a new investment that makes that investment attractive?
A)Risk-free rate
B)Market risk premium
C)Expected return minus the risk-free rate
D)Market rate of return
E)Cost of capital

Question

Quizplus · Accepted Answer

The cost of capital is the minimum required rate of return on a new investment, as it represents the opportunity cost of investing capital elsewhere.

Which One of the Following Is the Minimum Required Rate