Examveda
Examveda

Rate of return which considers riskiness and an available returns on investments is classified as

A. constant dividend

B. constant rate

C. maximum rate of return

D. minimum acceptable rate of return

Answer: Option D

Solution(By Examveda Team)

Rate of return which considers riskiness and an available returns on investments is classified as minimum acceptable rate of return. A minimum acceptable rate of return (MARR) is the minimum profit an investor expects to make from an investment, taking into account the risks of the investment and the opportunity cost of undertaking it instead of other investments.

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process