The Y2K Problem Refers to

question 109

Multiple Choice

The Y2K problem refers to

• A) the inability of all computers to function after year 2000.
• B) a manufacturing flaw in some Intel processors in 1998.
• C) the use of 4 digits to represent the year in early computers.
• D) the use of 2 digits to represent the year in early computers.
• E) the use of the 1929 rule to determine the first two digits of the year.

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Definitions:

Required Rate of Return

It is the minimum return an investor expects to achieve by investing in a particular security or portfolio, factoring in various risks and the time value of money.

Share of Stock

A share of stock represents ownership in a corporation, giving the shareholder a claim to a part of the company’s assets and earnings.

Dividend Growth Model

A method used to value a company's stock by assuming that dividends will grow at a constant rate in perpetuity.

Publicly Traded Stock

Stocks that are listed on a stock exchange, allowing investors to buy and sell shares to the general public.