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Interest rates generally reflect

the potential elects of initation
the level of risk in an investment
the real value of the investment
the amount of money invested

2 Answers

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Answer:

The level of risk in an investment

Step-by-step explanation:

Got it right on Principles of Invest. quiz

User Sezerug
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Answer:

the level of risk in an investment

Step-by-step explanation:

Interest rates show the percentage yield an investor will be gaining from undertaking a particular investment. All investments reward investors with regular returns that are expressed a percentage of the principal amount. The higher the returns, the more attractive the investment. Interest rates are the rewards or returns from an investment.

A high-interest rate is also indicative of the risk associated with the investment. Generally, high-risk investments will offer a higher interest rate. Government bonds and treasury bills are the safest investment but offer lower interest rates. Corporate bonds are riskier but have high-interest rates.

User Harunahi
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