When We Refer to the Rate of Return on an Investment

question 10

Multiple Choice

When we refer to the rate of return on an investment, we are generally referring to the:

• A)capital gains yield.
• B)effective annual rate of return.
• C)total percentage return.
• D)dividend yield.
• E)annualized dividend yield.

---

Definitions:

Nash Equilibrium

A concept in game theory where, in a non-cooperative game, each player's strategy is optimal given the strategies of all other players, leading to no incentive to deviate from their chosen strategy.

Sequential Game

A type of game in game theory where players make decisions or select strategies one after another, with subsequent players potentially being aware of the preceding players' moves.

Collude

An agreement between firms in the same industry to limit competition among them by setting prices or output levels.

Limit Pricing

A strategy where a firm sets its price low enough to deter entry by potential competitors into the market, aiming to maintain its dominant position and protect its market share.