Which Statement Is Part of a Specific Plan

question 26

Multiple Choice

Which statement is part of a specific plan?

• A)Write an eleven-page paper about the film industry
• B)Spend two hours reading about the effects of second-hand smoke on unborn children in medical journals
• C)Research on-line for information about Big Band trombonists
• D)Get term paper topic approval from instructor before writing

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Definitions:

Geometric Average Return

The average rate of return on an investment per year, compounded annually, over a specified time period.

Arithmetic Return

The simple average of a series of returns generated over a period of time.

Sharpe Measure

A metric used to evaluate the risk-adjusted return of an investment portfolio.

Risk-Free Return

The guaranteed return on an investment with zero risk of financial loss, typically associated with government bonds.