Suppose Your Friend Is a Strong Believer in Individual Liberties

question 12

Multiple Choice

Suppose your friend is a strong believer in individual liberties and negative rights,and she often complains about the government's establishment of positive rights.It sounds like she may be a(n) :

• A)socialist.
• B)communist.
• C)egalitarian.
• D)libertarian.

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Definitions:

Preemptive Right

The right of existing shareholders to purchase additional shares in a company before the company offers them to the public, to maintain their proportionate ownership in the company.

After-Tax Yield

The profitability of an investment after all taxes have been deducted, providing a true picture of the investment's return.

Required Return

The minimum rate of return that an investor expects to receive from an investment, accounting for risk preferences and inflation expectations.

Realized Return

The actual gain or loss generated on an investment, taking into account both dividends and appreciation.