Which one following will lower required rates of return?
A) Higher rates of inflation.
B) Higher risk premiums.
C) Lower rates of inflation .
D) Lower dividend yields.

Name: Which one following will lower required rates of return? A) Higher rates of inflation. B) Higher risk premiums. C) Lower rates of inflation . D) Lower dividend yields.
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Question

Quizplus · Accepted Answer

Lower rates of inflation decrease the risk of losing money due to inflation, which makes investors feel more confident and lowers their required rates of return.

Which One Following Will Lower Required Rates of Return