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• Risk of the investment. A company or investor may insist on a higher required rate of return for what is perceived to be a risky investment, or a lower return on a correspondingly lower-risk investment.
• Liquidity of the investment. If an investment cannot return funds for a number of years, this effectively increases the risk of the investment, which in turn increases the required rate of return.
• Inflation. The required rate of return must be layered on top of the expected inflation rate. Thus, a high expected inflation rate will drastically increase the required rate of return.
Lellah answered the question on November 8, 2021 at 08:32
- An investor is planning to invest in the following conditions;
Required
Calculate the expected rate of return
(Solved)
An investor is planning to invest in the following conditions;
Required
Calculate the expected rate of return
Date posted: November 8, 2021. Answers (1)
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Required
Calculate the weighted HPY of the portfolio of investment(Solved)
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Required
Calculate the weighted HPY of the portfolio of investment
Date posted: November 8, 2021. Answers (1)
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Required
Calculate
1. Arithmetic mean (AM)
2. Geometric mean(GM)
(Solved)
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Required
Calculate
1. Arithmetic mean (AM)
2. Geometric mean(GM)
Date posted: November 8, 2021. Answers (1)
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1. HPR
2. HPY
3. Annual HPR
4. Annual HPY
(Solved)
An investment costs sh 250,000 and its worth sh 350,000 after being held for two years. Calculate;
1. HPR
2. HPY
3. Annual HPR
4. Annual HPY
Date posted: November 8, 2021. Answers (1)
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