Choosing Not to Act Is Acting

question 50

True/False

Choosing not to act is acting.

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Definitions:

Risk-free Rate

The rate of return on an investment with zero risk, typically based on government bonds.

Dividend Increase

A company's decision to raise the amount of dividends paid to its shareholders, often viewed as a positive signal of the company's profitability and future prospects.

Required Return

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

Dividends

Funds disbursed by a company to its shareholders, typically originating from the firm's earnings.