A Normal Rate of Return Refers to the ________ That

question 257

Multiple Choice

A normal rate of return refers to the ________ that investors must earn on the funds they invest in a firm, expressed as a percentage of the amount invested.

• A)minimum amount
• B)maximum amount
• C)total amount
• D)profit

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Definitions:

Normative Statements

Assertions about how the world ought to be, reflecting opinions or values rather than objective observations.

Rational Choice

The theory that individuals always make prudent and logical decisions that provide them with the greatest benefit or satisfaction and are in their highest self-interest.

Normative Statements

Assertions about how the world ought to be, involving opinions and subjective judgements.

Rational Choice

A theory assuming individuals use logical calculations to make prudent decisions that provide them with the greatest benefit or satisfaction.