The Risk-Adjusted Discount Rate (RADR) Is the Rate of Return

question 55

True/False

The risk-adjusted discount rate (RADR) is the rate of return that must be earned on a given project to compensate the firm's owners adequately, thereby resulting in the maintenance or improvement of share price.

---

Definitions:

Inattentional Blindness

A psychological lack of attention that is not associated with any vision defects, causing an individual to fail to perceive an unexpected stimulus.

Two-Dimensional

Pertaining to a flat surface or plane, having only two dimensions, such as height and width, without depth.

Three Dimensions

Refers to the three aspects or axes of space—length, width, and depth—that define the physical universe or a geometric body.

Structures

The arrangement or interrelation of parts within a system, forming a complex whole or framework.