Question

Firms will typically maintain a list of research and development projects ranked by expected rate of return. Expected rate of return is defined as:

Answer 1

Expected rate of return is defined as the amount of money an individual gets on investment.

What is expected return?

The expected return is the amount of profit or addition on money invested that an individual who is an investor is expected to get after a periods of time on the investment.

Therefore, expected rate of return is defined as the amount of money an individual gets on investment.

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