A Capital Investment That Generates a 10 Percent Rate of Return

question 20

Multiple Choice

A capital investment that generates a 10 percent rate of return is worthwhile if:

• A)Corporate bonds of similar risk offer 8 percent rates of return.
• B)Corporate bonds of similar risk offer 10 percent rates of return.
• C)top-quality corporate bonds offer 10 percent rates of return.
• D)The expected rate of return on the stock market is 12 percent.

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Definitions:

PCC

Pyridinium chlorochromate, a reagent used in organic chemistry for the oxidation of primary alcohols to aldehydes and secondary alcohols to ketones.

Mass Spectrum

A graph or data set representing the distribution of ions by mass in a sample, used to determine the molecular mass and composition of a compound.

Base Peak

In mass spectrometry, this is the highest peak in a mass spectrum, representing the most abundant ion.

3,3-dimethyl-2-butanone

A ketone with a branched chain structure used in organic synthesis and various industrial applications.