In the Decision-Making Process, ________ Means Achieving the Best Possible

question 35

Multiple Choice

In the decision-making process, ________ means achieving the best possible balance among several goals.

• A)maximizing
• B)compromising
• C)optimizing
• D)satisficing
• E)framing

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Definitions:

Required Return

Required return is the minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.

Annual Dividend

This is the total amount of dividend payments a shareholder receives from a company in one year.

Long-Run Growth Rate

The sustainable rate at which a company or an economy can grow its output over a long period without increasing inflation.

Required Rate of Return

The minimum return an investor expects to achieve for the risk associated with a particular investment.