Give a definition of a "return". Why do we need to incorporate risk into return (discount rate)?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 14QTD
icon
Related questions
Question

Give a definition of a "return". Why do we need to incorporate risk into return (discount rate)? 

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer