Answered: explain 1. inefficient and…

explain 1. inefficient and efficient portfolio 2. min risk per unit of return and max risk per unit of return 3. expected return 4. required rate of return

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 24Q: How does the size of the initial investment affect the internal rate of return on the net present...

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Question

explain

1. inefficient and efficient portfolio

2. min risk per unit of return and max risk per unit of return

3. expected return

4. required rate of return

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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