For Starters, Investors Should Consider the Return on Investment, the Liquidity

question 163

True/False

For starters, investors should consider the return on investment, the liquidity, and riskiness of an investment.

---

Definitions:

Break-Even Default Percent

A financial metric indicating the percentage of default at which an investment breaks even, factoring in recovery rates and the probability of default.

Variable Cost

A cost that changes in proportion to the level of output or activity in a business.

Monthly Interest Rate

The percentage of interest that is charged or earned on a principal amount on a monthly basis.

Credit

An arrangement where goods, services, or money is received in exchange for a promise to pay back a definite sum of money at a future date.