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Commerce · Q971

Financial Management

Graduate and Post Graduate · Commerce · question 971

Q971

An attitude of investor towards dealing with risk determines the

A.
rate of return
Answer
B.
rate of exchange
C.
rate of intrinsic stock
D.
rate of extrinsic stock

Answer: Option A

Solution

Answer: Option A
Solution:
An attitude of investor towards dealing with risk determines the rate of return. A rate of return (RoR) is the net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost. Gains on investments are defined as income received plus any capital gains realized on the sale of the investment.