D076 WGU Q&A WITH COMPLETE SOLUTIONS UNIT3
How is risk defined in finance? - The possibility that the realized or actual return will differ from what we expect. (Risk is defined a s the possibility that the realized or actual return will differ from our expected return.) The nominal interest rate of an investment is 8%, and the inflation rate is 3%. What is the real interest rate? - 5% (Real Rate = Nominal Rate - Inflation, so 8% - 3% = 5%) What is another name for the cost of capital? - Discount rate What is the name for the minimum rate of return that an investor or lender will accept for investments? - Required rate of return
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d076 wgu qa with complete solutions unit3
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