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arlik [135]
3 years ago
5

Which answer is not a cost to the investor that is included in the calculation of an investment's interest rate

Business
1 answer:
jeyben [28]3 years ago
4 0

Answer:

Risk of a bad investment

Explanation:

When an investor is calculating an investment's interest rate, he/she must include all brokerage commissions and fees , inflation rate (interest rate must exceed the inflation rate) and the investor's opportunity cost.

Investors are risk adverse, which means that a risky investment should yield a higher return. That could be considered a rational investment rule, but it is not included in the calculation of the interest rate.

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