Which of the Following Statements Are True

question 22

Multiple Choice

Which of the following statements are true?

• A) The value of any investment is based on the cash flows it is expected to generate in the future.
• B) Investors are not generally risk averse.
• C) Uncertain cash flows are preferred to certain cash flows.
• D) All of the above are true.
• E) None of the above are true.

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Definitions:

Closed-ended Question

A question formulated to receive a specific, limited response, typically "yes" or "no," facilitating straightforward answers or data collection.

Closed-ended Question

A type of question that typically can be answered with "yes" or "no" or within a limited set of options.

Hypothetical Question

A question based on assumptions rather than facts, often used to explore possibilities or legal implications in various scenarios.

Open-ended Question

A type of question that allows for a free-form response, encouraging detailed answers rather than a simple yes or no.