In the Long Run, the Rate of Return on a Capital

question 103

True/False

In the long run, the rate of return on a capital investment is, on average, directly related to its risk.

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Definitions:

Offset Account

A bank account that reduces the amount of interest payable on a loan by the amount held in the account.

Short-Term Investments

Investments that can easily be converted into cash, typically within a year.

Balance Sheet

This document outlines the resources, debts, and equity of the investors of a business on a certain date.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered but not yet paid for.