If the minimum acceptable rate of return for investments exceeds the average rate of return on an asset,the asset should be purchased.

Question

Quizplus · Accepted Answer

This statement is incorrect. If the minimum acceptable rate of return exceeds the average rate of return on an asset, it suggests that the asset is not expected to provide enough return to meet investor expectations. Therefore, it may not be a good investment option and should not be purchased.

If the Minimum Acceptable Rate of Return for Investments Exceeds