CFA Practice Question

There are 57 practice questions for this study session.

CFA Practice Question

If you invest in a stock you want a 10% return per year. Your reasoning is that if you don't receive 10% return, then you'd be better off paying down your outstanding mortgage, on which you are paying 9% interest. The 10% return is an example of:
A. Expected return.
B. Required return.
C. Realized return.
Explanation: The required return is the opportunity cost for investing in the asset.

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