Which of the Following Would Be an Example of Capital

question 275

Multiple Choice

Which of the following would be an example of capital for a retail gasoline station?
(i) the gas tanks and pumps
(ii) the service attendants' time
(iii) the plot of land on which the station sits

• A)(i) only
• B)(iii) only
• C)(i) and (iii) only
• D)(ii) and (iii) only

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Definitions:

Beta

A gauge of the systematic risk or volatility of a security or a portfolio relative to the overall market.

Risk-Free Rate

The theoretical rate of return on an investment with no risk of financial loss, often represented by government bonds.

Market Neutral Bets

Investment strategies aiming to profit from both increasing and decreasing prices in one or more markets, whilst minimizing exposure to market risk.

Considerable Leverage

The use of borrowed capital to increase the potential return of an investment.