Factors Affecting Required Rate of Return on a Stock

Factors Affecting Required Rate of Return

Prev Question Next Question

Question

Which of the following affect the required rate of return on a stock?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D. E.

A

The required rate of return is equal to the nominal risk-free rate (a function of the real risk-free rate and the rate of inflation) plus the risk premium. Changes in the exchange rate usually are included in the risk premium.