Exhibit 1A-6 Straight Line

question 171

Multiple Choice

Exhibit 1A-6 Straight line
-Straight line A-D in Exhibit 1A-6 shows that:

• A) increasing value for X will increase the value of Y.
• B) increasing value for X will decrease the value of Y.
• C) increasing values for X does not affect the value of Y.
• D) all of these.

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional shares.

PE Ratio

Price-to-Earnings Ratio; a valuation measure for a company comparing its current share price to its per-share earnings.

Yield %

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or value.

Default Risk Premium

The additional yield that investors require to invest in bonds that have a risk of default, compared to risk-free bonds.