What Kind of Investor Is the Most Likely Candidate to Be

question 28

Multiple Choice

What kind of investor is the most likely candidate to be denied access to the securities markets?

• A) Any and all individual investors
• B) High-risk investors
• C) Certain kinds of financial lawyers
• D) Employees of the SEC
• E) Government officials with ties to the securities market

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Definitions:

Discount Factor

A multiplier used in time value of money calculations to determine the present value of a future sum or cash flow.

Straight-Line

A method of calculating depreciation of an asset, whereby its cost is evenly spread over its useful life.

Cash Payback Period

The time it takes for a business to recover its investment in a project solely from cash flows, used to assess the risk or attractiveness of an investment.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset.