The rate of return is also called the:
A)discount rate.
B)discount rate and hurdle rate only.
C)discount rate, hurdle rate, and opportunity cost of capital.
D)discount rate and opportunity cost of capital only.

Question

Quizplus · Accepted Answer

The rate of return encompasses the discount rate, hurdle rate, and opportunity cost of capital. Therefore, the best choice is C. Choice A is incorrect because it only includes the discount rate, whereas the rate of return encompasses more than just the discount rate. Choice B is incorrect because it only includes the discount rate and hurdle rate, whereas the rate of return encompasses more than just those two. Choice D is incorrect because it only includes the discount rate and opportunity cost of capital, whereas the rate of return encompasses more than just those two.

The Rate of Return Is Also Called The