Risk in Finance Means That an Asset

question 87

Multiple Choice

Risk in finance means that an asset

• A)does not pay dividends.
• B)does not pay capital gains.
• C)has a present value that is negative.
• D)has future payments that are uncertain.

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Definitions:

Rivals Imitate

The process by which companies mimic the strategies, products, or practices of their competitors.

Originator's Profits

The earnings generated by the creator or initial producer of a product or service, typically before any secondary market involvement.

Innovation

The act of introducing something new or making improvements to existing products, services, methodologies, or technologies.

Widespread Diffusion

The broad and extensive spread of something, such as a technological innovation or cultural idea, across a wide area or among a large number of people.