If the Total Rate of Return Is Multiplied by 1/N,where

question 181

Multiple Choice

If the total rate of return is multiplied by 1/N,where N is the number of years for which the investment was held,the result is the

• A)serialized rate of return.
• B)annualized rate of return.
• C)tax-free rate of return.
• D)capitalized rate of return.

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Definitions:

Liquid Asset

Assets that can be quickly and easily converted into cash without significant loss in value.

Noncash Investing

Transactions involved in investing activities that do not involve immediate cash flow, such as exchanging one asset for another.

Financing Activity

Activities that result in changes in the size and composition of the equity capital and borrowings of the company.

Cash Flow Statements

Financial statements that record the cash inflows and outflows for a company over a specific period of time.