The _____ Is the Minimum Acceptable Rate of Return on an Investment

question 7

Multiple Choice

The _____ is the minimum acceptable rate of return on an investment.

• A)capitalization rate
• B)internal rate of return  
• C)discount rate
• D)required rate of return

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Definitions:

Car-Insurance Coverage

Protection against financial loss resulting from incidents involving a vehicle, including accidents, theft, and other damages.

Moral Hazard

A situation where one party is more likely to take risks because they do not bear the full consequences of their actions.

Auto Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident or other vehicular damage.

Moral Hazard

Moral Hazard refers to situations where one party is more likely to take risks because the negative consequences of their actions are borne by another party.