The Changing Cost of Money Is Referred to as ____________

question 63

Multiple Choice

The changing cost of money is referred to as ____________ risk.

• A) interest-rate
• B) inflation
• C) economic
• D) trade-off
• E) personal

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Definitions:

Expected Return

The average of a probability distribution of all possible returns that an investment might generate.

Dividend Yield

A financial metric indicating the annual dividend payment of a company as a proportion of its share price.

Constant Growth

A model, often referred to as the Gordon Growth Model, that assumes a firm's dividends grow at a consistent rate indefinitely, used to evaluate the fair value of a stock.

Capital Gains Return

The profit realized from the sale of securities or investments which have increased in value over the time they were held.