The terms below all refer to interest rate, in one context or another. Which is the correct term for the following situation: an investor studies the financial statements, business plan and management team of a new start-up venture, as well as studying general economic conditions, and determines that she needs a return of 12.5% to justify the risks of investment.
a. discount rate
b. implied return
c. required return
d. realized return
e. None of the above