Which of the Following Best Describes What Investors in Shares

question 33

Multiple Choice

Which of the following best describes what investors in shares seek compensation for?

• A) The loss of interest on a building society account plus the dividend yield on shares
• B) Inflation and risk only
• C) The risk- free rate of return plus a risk premium plus a premium for inflation
• D) Sacrifice of immediate use of cash otherwise available for consumption, inflation and risk

---

Definitions:

Excise Taxes

Taxes paid when purchases are made on a specific good, such as gasoline or tobacco, often included in the price of the product.

Tax Burden

The measure of the total amount of taxes that individuals, businesses, or other entities must pay.

Medicaid

Medicaid is a government-funded program in the United States that provides health care services to low-income individuals and families.

Corporate Profits

The total earnings of a company after subtracting production and operating costs, including taxes and interest.