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rodikova [14]
2 years ago
7

One of the basic premises in finance is that when the risk of an investment is high, the rate of return required by the investor

will be:
a. high.
b. moderate.
c. equal to short term T-bill rates.
d. low.
Business
1 answer:
Aleks04 [339]2 years ago
5 0

Answer:

A. High

Explanation:

When an investment is considered risky, investors would demand a high rate of return as compensation for holding a risky investment.

The required rate of return is usually higher than the short term t bills rate.

I hope my answer helps you.

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Explanation:

Financial intermediaries are the institutions they have been put in place like a building society, bank, or unit-trust company, which are charged with the responsibility of holding funds from the lenders so that loans will be made available to people that wants to borrow.

It should be noted that banks that are financial intermediaries generate earnings when they facilitate the transfer of money from savers to borrowers by paying savers a smaller return than they demand from borrowers. This earning is their charges for the service rendered.

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The sustainable growth rate (sgr) is 8 percent.

<h3><u>What is Sustainable growth rate?</u></h3>
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Know more about sustainable growth rate with the help of the given link:

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~Hope this helped!
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