Any Current Outlay That Is Expected to Yield a Flow

question 13

Multiple Choice

Any current outlay that is expected to yield a flow of benefits beyond one year in the future is:

• A) a capital gain
• B) a wealth maximizing factor
• C) a capital expenditure
• D) a cost of capital
• E) a dividend reinvestment

---

Definitions:

Collar

An options strategy that brackets the value of a portfolio between two bounds.

Net Outlay

The total amount invested or spent, minus any returns or reimbursements.

Options Strategy

A plan or approach for trading options that can involve buying and/or selling one or more options that differ in one or more of the options' variables.

Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.