The Principle of Finance That " Higher Returns Are Expected

question 149

True/False

The principle of finance that " higher returns are expected for taking on less risk " implies that rational investors would choose only safe investment because they generally do not feel that a higher return enough to justify taking greater risk.

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Definitions:

NDP

Net Domestic Product; it calculates the total value of all goods and services produced within a country in a specific period minus depreciation.

Intermediate Product

Goods that are used in the production process to make other goods, rather than being bought by consumers.

National Income Accountants

Specialists who compile national accounts, a system of accounts that provides detailed information on the economic activities and output of a nation, such as GDP, national income, and expenditure.

Material Well-being

A measure of the quantity and quality of goods and services available to an individual or society.