The Added Return an Investor Needs to Compensate for the Risks

question 131

Multiple Choice

The added return an investor needs to compensate for the risks of future payments is called a(n)

• A) present discounted value.
• B) marginal risk product.
• C) internal rate of return.
• D) risk premium.

---

Definitions:

Steel-Toed Boots

Protective footwear with a reinforced toe area to protect feet from heavy objects, common in industrial and construction settings.

Safety Shoes

Footwear designed to protect the feet from a wide range of workplace hazards, including impact, compression, and puncture.

ILSAC

The International Lubricant Standardization and Approval Committee, representing both domestic and Japanese auto manufacturers, which creates standards and ratings for oils used in the automotive industry.

EPA

The Environmental Protection Agency, a U.S. federal agency responsible for regulating and ensuring the protection of the environment and human health.