A Suitable Benchmark for Measuring the Performance of a Share

question 2

True/False

A suitable benchmark for measuring the performance of a share fund would be the SBC 90- day bill index.

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Definitions:

Cash Flow Growth Rate

The rate at which a company's cash flow from operations grows over a specific period, reflecting its financial performance and stability.

Rental Property

Real estate property that is leased or rented out to tenants, generating income for the owner.

Return Requirement

The minimum expected rate of return necessary for an investment to be considered worthwhile by an investor, reflecting the risk level.

Annual Cash Flows

The total amount of money being transferred into and out of a business over the course of a year, indicative of its operational efficiency and profitability.