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) nominal returns

Question

Quizplus · Accepted Answer

The holding period return is not a component of the required rate of return. The required rate of return includes the expected rate of inflation, the time value of money, the risk of the investment, and the nominal returns. The holding period return refers to the actual return earned from an investment over a specific period of time and is not a factor in determining the required rate of return.

Which of the Following Is Not a Component of the Required