The Minimum Rate of Return Necessary to Attract an Investor

question 105

Multiple Choice

The minimum rate of return necessary to attract an investor to purchase or hold a security is referred to as the

• A) stock's beta.
• B) investor's risk premium.
• C) investor's required rate of return.
• D) risk-free rate.

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Definitions:

Personal Dispositions

Character traits or tendencies that influence how an individual responds to situations or expresses their personality.

Situational Influences

External factors or circumstances that affect an individual's decisions, behavior, and emotions.

Fundamental Attribution Error

The bias towards attributing others' actions to their inherent qualities rather than considering the circumstances surrounding those actions.

Compassionate Personality

A character trait characterized by a desire to help those in need and a deep empathy for others' suffering.