The rate of return is also called the
A)discount rate only.
B)discount rate and hurdle rate only.
C)discount rate, hurdle rate, and opportunity cost of capital.
D)discount rate and opportunity cost of capital only.

Question

Quizplus · Accepted Answer

The rate of return is equivalent to the discount rate, hurdle rate, and opportunity cost of capital. Therefore, choice C is the best option. Option A is incorrect, as the rate of return is not always the same as the discount rate. Option B is incorrect because the rate of return is not always the same as the hurdle rate. Option D is also incorrect, as the rate of return is not necessarily equivalent to the opportunity cost of capital.

The Rate of Return Is Also Called the