An Example of Social Risk Is

question 20

Multiple Choice

An example of social risk is:

• A) Inadequate housing
• B) Lack of education
• C) High-crime neighborhood
• D) Lack of insurance

---

Definitions:

Required Return

The minimum expected return an investor demands for holding a particularly risky investment.

Market Capitalization Rate

An alternative term often used to refer to the cost of equity or the expected return of a market portfolio.

Plowback Ratio

A metric indicating the percentage of earnings retained by a company after dividends have been paid out to shareholders.

P/E Ratio

A valuation metric that compares the current share price of a company to its per-share earnings.