Which of the Following Should Require the Highest Rate of Return

question 137

Multiple Choice

Which of the following should require the highest rate of return?

• A) 90 day Certificate of deposit
• B) Money market that can be liquidated at anytime
• C) 120 day Treasury bill
• D) Accounts receivable usually collected in 30 days

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Definitions:

Correlation Problem

Issues arising from attempts to interpret or infer causality from purely correlational data without establishing a clear causal relationship.

Causation

The relationship between cause and effect, where one event (the cause) directly results in another event (the effect).

Economic Activity

Any action that involves the production, distribution, and consumption of goods and services within an economy.

Fallacy of Composition

The erroneous belief or argument that what is true for a part is necessarily true for the whole, or that what holds for individual members of a group must necessarily hold for the group as a whole.