What is the term for the interest rate that investors expect to earn on a financial asset when determining its fair value?

Security Valuation MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Security Valuationfinance-mcqs › security-valuation
Published
13 May 2023
Last updated
28 May 2026

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Explanation

The required rate of return is the minimum interest rate an investor expects to receive from an investment to compensate for its risk, and it is used to calculate the fair value of a security.

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