Discuss What Is Necessary to Make Rational Decisions

question 205

Essay

Discuss what is necessary to make rational decisions.Be sure to mention opportunity cost,marginal cost,and marginal benefit.

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Definitions:

Geometric Average Return

The average compound return earned per year over a multi-year period.

Dividends

Payments made by a corporation to its shareholder members, representing a portion of the corporate profits.

Capital Gains Yield

The percentage change in the market price of an asset over a period, excluding dividends.

Shares

Shares represent units of ownership interest in a corporation or financial asset, providing a proportionate claim on its assets and profits.