One of the four most fundamental factors that affect the cost of money as discussed in the text is the risk inherent in a given security.The higher the risk,the higher the security's required return,other things held constant.

Question

Quizplus · Accepted Answer

This statement is true as mentioned in the text. The riskier the security, the higher the required return to compensate for that risk.

One of the Four Most Fundamental Factors That Affect the Cost