Chapter 01 The Investment Setting

Question # 00039364 Posted By: solutionshere Updated on: 12/28/2014 07:35 PM Due on: 01/27/2015
Subject Geology Topic General Geology Tutorials:
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61.

The ability of the investor to convert an investment into cash in a short period of time is called:


A.

short-term orientation.

B.

low investment risk.

C.

liquidity.

D.

capital appreciation.

E.

None of the above

62.

Wealthy investors may prefer the favorable tax treatment of investments such as:


A.

corporate bonds.

B.

municipal bonds.

C.

common stock.

D.

preferred stock.

63.

What is the rate of return on a share of common stock that increased in value from $40 to $50?


A.

5%

B.

10%

C.

20%

D.

25%

E.

None of the above

64.

What would be the rate of return for a stock that increased in value from $60 per share to $63 per share and paid a $3 dividend?


A.

12%

B.

11%

C.

10%

D.

1.5%

E.

5%

65.

An investment in common stock carries a higher return than a bank certificate of deposit. The difference in returns is called:


A.

the risk-free rate.

B.

the real rate of return.

C.

the risk premium.

D.

the beta.

E.

None of the above

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