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A Stock That Sells for Less Than $1 Per Share

question 125

Multiple Choice

A stock that sells for less than $1 per share is called a _____ stock.


Definitions:

Returns

The profit or loss derived from an investment over a particular period, usually expressed as a percentage.

Sharpe Ratio

A measure used to evaluate the risk-adjusted return of an investment by dividing the difference between the investment's return and the risk-free rate by the standard deviation of the investment's returns.

Benchmark

A standard or reference by which the performance of a security, manager, or investment portfolio can be measured.

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