The Potential Return on Any Investment Should

question 8

Multiple Choice

The potential return on any investment should

• A) Be directly related to the risk the investor assumes.
• B) Be inversely related to the risk of the investment.
• C) Not have any relationship to the risk of any investment.
• D) Be inversely related to the risk the investor assumes.
• E) Be guaranteed.

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Definitions:

Market Value

The market's present selling or buying price for an asset or service.

CCA Class

Refers to the classification of tangible property under the Canadian Capital Cost Allowance for purposes of tax depreciation.

Tax Rate

The cut of income taxed from individuals and corporations.

Book Value

The net value of a company's assets minus its liabilities, often used to determine a company's financial health.