n NISM Certifications
XXI NISM Series XXI-A
Medium

The "Cost of Capital" refers to:

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The interest rate paid on borrowed funds

  2. The return required by investors to compensate for the risk of investment

    Correct answer

  3. C

    The total expenses of a company

  4. D

    The price paid for acquiring assets

Why this is the answer

Cost of capital is the minimum return needed for investment.

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