The return that investors feel is most likely to occur based on currently available information is known as the:
A)required return.
B)expected return.
C)either the required or expected return.
D)neither the required or expected return.

Question

Quizplus · Accepted Answer

The return that investors feel is most likely to occur based on currently available information is known as the expected return. Therefore, option B is the correct answer. Option A, required return, is the minimum return required by investors to compensate for the risk they are taking. Option C is not correct because although both required and expected returns are related to investors' expectations, they have different meanings. Option D is incorrect because one of the options must be correct, and option B is the correct choice.

The Return That Investors Feel Is Most Likely to Occur