An investment is acceptable if the expected rate of return is greater than the desired rate of return.

Question

Quizplus · Accepted Answer

An investment is considered worthwhile if it generates an expected rate of return that is greater than the desired rate of return. This means that the investor is earning a higher return on their investment than they expected, which is always a positive outcome. If the expected rate of return is less than the desired rate of return, the investment is not considered valuable and may not be worth pursuing.

An Investment Is Acceptable If the Expected Rate of Return