The expected rate of return from an investment is:

Name: The expected rate of return from an investment is:
Brand: Quizplus
Rating: 4.8 (55 reviews)

Question

Quizplus · Accepted Answer

The expected rate of return includes both the rate that compensates for time preference, which is the minimum return required by investors to delay consumption, and also the rate that compensates for risk, which is the additional return required by investors to compensate for the uncertainty of returns. Thus, option C is the best choice as it captures both these factors.

The Expected Rate of Return from an Investment Is