Solved

The Rate of Return on a Security Is The

Question 15

Multiple Choice

The rate of return on a security is the:


A) interest rate that a security pays over its life.
B) interest rate that equates the current outflow to acquire the security with its current price.
C) capital gains rate that a security promises over its life.
D) interest rate that makes the present value of the security's expected cash flows equal to its price.

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