If One Tries to Sell Their Business in a Hurry

question 5

Multiple Choice

If one tries to sell their business in a hurry:

• A) it is possible to take advantage of certain income tax breaks.
• B) they can usually find someone who is anxious to be an entrepreneur.
• C) it is likely they will regret the move.
• D) they might get much less than it is worth.

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Definitions:

Risky Assets

Investments with a high degree of uncertainty in their returns, usually implying a greater potential reward.

Investment Opportunity Set

The array of all possible investment combinations available to an investor considering both risk and return.

Global Minimum-Variance Portfolio

The Global Minimum-Variance Portfolio is an investment portfolio constructed to achieve the lowest possible level of risk (variance) for its expected return, using assets from around the world.

Perfectly Negatively Correlated

A relationship between two securities in which one's price moves in the opposite direction of the other's, resulting in a correlation coefficient of -1.