The required return is ________ that is necessary to compensate for the risk investment i will contribute to the portfolio.
A) the realized return
B) the highest return
C) the lowest return
D) the expected return

Question

Quizplus · Accepted Answer

The required return is the expected return that investors require to compensate for the risk undertaken in the investment. Therefore, the correct choice is D, the expected return. Realized returns refer to the actual return earned on an investment, while the highest and lowest return are not relevant to determining the required return.

The Required Return Is ________ That Is Necessary to Compensate