What Figure Is a Measure of the Riskiness of Current

question 66

Multiple Choice

What figure is a measure of the riskiness of current earnings and the expected growth rate of future earnings and is used to assess the earnings based value of a business?

• A) real interest rate
• B) capitalization rate
• C) risk rate
• D) valuation rate

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Definitions:

Positive Correlation

An association between increases in one variable and increases in another—or between decreases in one and in another.

Height And Weight

Physical measurements that indicate the vertical stature and mass of a body, often used in assessing health and development.

Average Income

The sum of all incomes in a group divided by the number of individuals in that group, often used as an economic indicator.

Dental Disease

Disorders and conditions that affect the health of the teeth, gums, and other structures of the mouth.