The Market Interest Rate Is Often Called the

question 88

Multiple Choice

The market interest rate is often called the

• A) stated interest rate.
• B) effective interest rate.
• C) contractual interest rate.
• D) coupon interest rate.

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Definitions:

Dividend

Dividend represents the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Share

A unit of ownership in a company or financial asset, often traded on a stock exchange.

Arithmetic Average Return

The simple average of a series of returns over a period of time, calculated by summing the returns and dividing by the number of periods.

Jensen's Measure

A performance evaluation measure that calculates the excess return a fund generates over its expected return, given its level of risk.