Which of the following is not a component of the required rate of return?
A) Expected rate of inflation
B) Time value of money
C) Risk
D) Holding period return
E) All of the above are components of the required rate of return

Question

Quizplus · Accepted Answer

Holding period return is not a component of the required rate of return. The required rate of return is based on the expected rate of inflation, time value of money, and risk. Holding period return is a measure of the return earned by an investor over a given period of time, which is not a part of the calculation of required rate of return.

Which of the Following Is Not a Component of the Required