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Rate of required return to cover risk of investment in absence...

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Management Accounting
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Rate of required return to cover risk of investment in absence of inflation is classified as

Answer & Solution
Correct Answer: Option A
Rate of required return to cover risk of investment in absence of inflation is classified as real rate of return. A real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external factors.
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