Question

why investors require a return?

why investors require a return?

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Answer #1

The main aim of spending money in an asset is getting back something. Investors expect that by making an investment there would be some kind of takeaway from the same. If there is no return from an investment, there would be no point for an investor to make any investment. Also with the help of return earned from one investment they can again invest the same in another asset. A business would not be able to raise funds unless it is able to generate returns from funds that have been invested by investor.

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