Which of the Following Statements Is Incorrect

question 139

Multiple Choice

Which of the following statements is incorrect?

• A) Today, most corporations provide investors with valuable information on their Web site.
• B) There is usually a charge to access investment information available through most search engines.
• C) While some information from a professional advisory service is free, there is usually a charge for the more detailed information you may need to evaluate a potential investment.
• D) Most investment companies that sponsor mutual funds provide investors with valuable information that can be used to evaluate their funds.
• E) Investment information available on the Internet may be more up to date than information contained in printed materials.

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Definitions:

Cash Inflows

The total amount of money being transferred into a business, typically from operating, investing, and financing activities.

Required Rate of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Cash Flows

The net amount of cash and cash equivalents being transferred into and out of a business.