It Is Recommended That the Factors Extracted Should Account for at Least

question 70

Multiple Choice

It is recommended that the factors extracted should account for at least ________ of the variance.

• A)50 %
• B)60%
• C)65%
• D)70%

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Definitions:

Required Rate of Return

The required rate of return is the minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.

Expected to Grow

Typically refers to a business or investment that is anticipated to increase in size, value, or income over time.

Most You Should Pay

The maximum price at which it's considered reasonable to purchase an asset or service based on its expected future returns.

Future Cash Flows

Estimated financial gains or expenditures expected to occur in the future as a result of current investments or decisions.