Identify Which One of the Following Statements Regarding the Risk

question 118

Multiple Choice

Identify which one of the following statements regarding the risk of an investment is true.

• A) The higher the risk, the higher the minimum desired rate of return.
• B) The higher the risk, the lower the hurdle rate.
• C) The higher the risk, the lower the cost of capital.
• D) The lower the risk, the higher the discount rate.

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