Time value of money and inherent risk of investing

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Reference no: EM131613221

When investing in a financial Security(a stock, share or bond)investor should be compensated for both the “Time Value of money”and the inherent risk of investing in a particular opportunity. The rate at which the investor requires to be compensated is called:

1. The Risk-free Rate

2. The Requied Rate of Return

3. The Market Rate

4. The investor's Rate

Reference no: EM131613221

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