Residual Value Is Also Known as All of the Following

question 77

Multiple Choice

Residual value is also known as all of the following except

• A) scrap value
• B) trade-in value
• C) salvage value
• D) net book value

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Definitions:

Diversification Effects

The reduction in risk achieved by investing in a variety of assets, thus minimizing the impact of poor performance from any single asset.

Portfolio A

A specific collection of financial assets such as stocks, bonds, cash equivalents, and their mutual funds, owned by an individual or an institutional investor.

Portfolio B

Portfolio B is not a specific term but could refer to a theoretical or actual portfolio of investments selected as a part of an investment strategy or for analysis.

Variance

A measure of the distribution’s variability. It is the sum of the squared deviations about the expected value.