Which of These Factors Influences the Returns Required by Investors

question 34

Multiple Choice

Which of these factors influences the returns required by investors from an investment project?

• A)Interest foregone.
• B)Inflation.
• C)Risk premium.
• D)All are influences.

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Definitions:

Inductance

The property of an electrical conductor that causes it to oppose a change in the current flowing through it, stored in the magnetic field created by the current.

Henry

The SI unit of inductance, defined as the inductance in a circuit when an electromotive force of one volt is produced by a current changing at one ampere per second.

Left-hand Generator Rule

A rule used to determine the direction of induced current when a conductor moves through a magnetic field, utilizing the left hand to align thumb, forefinger, and middle finger perpendicularly.

Magnetic Field

A magnetic field is a vector field that surrounds magnets and electric currents, exerting magnetic forces on moving electric charges and magnetic materials.