In Financial Investment, a Riskier Asset Typically Has

question 215

Multiple Choice

In financial investment, a riskier asset typically has:

• A) a higher expected return.
• B) a lower expected return.
• C) the same expected return as a less risky asset.
• D) a higher or lower expected return, depending on the industry.

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Definitions:

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the goods and shipping costs from the point of origin.

Perpetual Inventory System

An inventory tracking system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Debit Memo

A document issued to record a reduction in the balance due from a customer, often due to a return or correction.

Gross Profit

The difference between revenue and the cost of goods sold before expenses.