One Reason That the Required Rate of Return on Shares

question 2

Multiple Choice

One reason that the required rate of return on shares is generally more than on interest-yielding securities is because:

• A)borrowers may default on payments.
• B)the returns on shares are higher than on interest-yielding securities.
• C)debtholders rank ahead of shareholders in case of default.
• D)shareholders rank ahead of debtholders in case of default.

---

Definitions:

Motivation Strategy

A plan or method implemented to inspire and encourage individuals or teams to achieve their goals.

ABC Method

A time management approach that categorizes tasks based on their importance, with 'A' being the most critical tasks.

Activate

To start or turn on a process or device, bringing it into action or making it operative.

Accept

To receive willingly something that is offered or to acknowledge an event or situation as true.