Which of the Following Statements Concerning the Required Rate of Return

question 48

Multiple Choice

Which of the following statements concerning the required rate of return on stocks is true?

• A)the higher an investor's required rate of return,the higher the value of the stock
• B)If risk is reduced,the required return will decrease because more investors are risk-averse.
• C)The required return on preferred stock is generally higher than the required return on common stock.
• D)the higher the risk,the higher the required return,other things being equal

---

Definitions:

Expected Situation

A scenario or outcome that is anticipated or predicted based on current trends or data.

Hidden Curriculum

The unintended lessons, values, and perspectives that students learn in school beyond the official curriculum.

Dominant Socializing Agent

The primary entity or influence, such as family, education, or media, that plays a crucial role in shaping an individual's values, beliefs, behaviors, and social norms.