Question

17. Normal Rate of Return depends on
1 point
O )
(a) Rate of Interest
O (b) Rate of
, Risk
O (c) Both (a) and (b)
0 )
(d) None of the above​

Answer 1

Answer:

c

Explanation:

The yield-values observed for flour doughs depend on the order of the time during which stresses are applied, or in other words, "the length of the time of application of a stress in relation to the corresponding time of relaxation determines what proportion of the deformation is elastic (recoverable)

Answer 2

Answer:

(c) Both (a) and (b).

Explanation:

• The normal rate of return is a measure of the expected rate of return on an investment or a portfolio of investments, taking into account both the rate of interest and the level of risk. The rate of interest reflects the cost of borrowing or the return on savings, while the level of risk reflects the uncertainty associated with the expected rate of return. A higher rate of interest is generally associated with a lower level of risk, while a lower rate of interest is associated with a higher level of risk.
• To determine the normal rate of return, one must consider both the rate of interest and the level of risk. For example, a low-risk investment with a low rate of interest may have a lower normal rate of return than a high-risk investment with a high rate of interest. The normal rate of return is an important factor for investors when evaluating the potential return on an investment, as it helps them to determine the trade-off between risk and return.
• In conclusion, the normal rate of return is a measure of the expected rate of return on an investment that takes into account both the rate of interest and the level of risk. Understanding the normal rate of return is crucial for investors as it helps them make informed investment decisions by considering both the potential return and the associated risk.

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