Use the Information Below to Answer the Following Question(s) -Based on the Average Utility, Which of the Following Is

question 22

Multiple Choice

Use the information below to answer the following question(s) . Below are four options for an investment decision. $$\begin{array} { | l | l | l | l | } \hline \text { Decision/Event } & \text { Rates Rise } & \text { Rates Stable } & \text { Rates Fall } \\\hline \text { Bank CD } & 0.80 & 0.80 & 0.80 \\\hline \text { Bond fund } & - 0.75 & 0.86 & 1.50 \\\hline \text { Index fund } & 0.00 & 0.90 & 1.20 \\\hline \text { Growth fund } & - 0.30 & 0.70 & 1.40 \\\hline\end{array}$$
-Based on the average utility, which of the following is considered the worst decision?

• A) Bank CD
• B) Bond fund
• C) Index fund
• D) Growth fund

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Definitions:

Accounting Equation

The accounting equation represents the relationship between a company's assets, liabilities, and equity, illustrating that assets are funded by borrowing (liabilities) or investing (equity).

Stock Issuances

The process of making new shares available for sale to investors, often used by companies to raise capital.

Accounting Equation

The foundational equation of double-entry bookkeeping, stating that Assets = Liabilities + Equity, ensuring the balance sheet remains balanced.

Assets

Resources controlled by a business due to past transactions or events, from which future economic benefits are expected to flow to the entity.