The rate of return on fixed assets is normally assumed to be ____ the rate of return on current assets (especially cash and marketable securities).
A) less than
B) greater than
C) equal to
D) half

Question

Quizplus · Accepted Answer

The rate of return on fixed assets is normally assumed to be greater than the rate of return on current assets because fixed assets, such as property, plant, and equipment, typically involve higher risk and longer-term investment, hence expected to yield higher returns compared to more liquid and lower-risk current assets like cash and marketable securities.

The Rate of Return on Fixed Assets Is Normally Assumed