Above-Average Returns Are

question 27

Multiple Choice

Above-average returns are

• A) higher profits than the firm earned last year.
• B) higher profits than the industry averaged over the last 10 years.
• C) profits in excess of what an investor expects to earn from a historical pattern of performance of the firm.
• D) profits in excess of what an investor expects to earn from other investments with a similar level of risk.

---

Definitions:

Efficient Projects

Initiatives that achieve the highest possible output with the least amount of inputs or resources used.

Expenditures

The total amount of money spent by individuals, businesses, or governments on goods and services.

GDP

Gross Domestic Product, a measure of the economic performance of a country, calculated as the total value of all goods and services produced within the country in a specific time period.

Unfunded Promises

Commitments or obligations, especially by a government, for which no money has been set aside to fulfill them.