The Rate of Return on a Security Is The

question 83

Multiple Choice

The rate of return on a security is the:

• A)interest rate that a security pays over its life.
• B)interest rate that equates the current outflow to acquire the security with its current price.
• C)capital gains rate that a security promises over its life.
• D)interest rate that makes the present value of the security's expected cash flows equal to its price.