FIN571 Week2 DQs - 18711

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1. What is a required return and what is an expected return?


2. What does the term market price of risk mean?

Solution Description

Required rate of return is the minimum return that any investor demands to receive from his or her investment. Therefore, the required rate of return depends on the investor's discretion and it is different depending on the investor's priorities. One can use a standard formula to calcu