changes
does not change
becomes zero
becomes one
✅ The correct answer is B.
When changes in patents and industry competition occur, required rate of return does not change. The required rate of return is the minimum return an investor expects to achieve by investing in a project. An investor typically sets the required rate of return by adding a risk premium to the interest percentage that could be gained by investing excess funds in a risk-free investment.
When changes in patents and industry competition occur, required rate of return does not change. The required rate of return is the minimum return an investor expects to achieve by investing in a project. An investor typically sets the required rate of return by adding a risk premium to the interest percentage that could be gained by investing excess funds in a risk-free investment.