An Investment Requires a Total Return That Comprises

question 48

Multiple Choice

An investment requires a total return that comprises:

• A)a real rate of return and compensation for inflation.
• B)a real rate of return, compensation for inflation, and a risk premium.
• C)compensation for inflation and a risk premium.
• D)a real rate of return, compensation for inflation, a risk premium, and compensation for time and effort devoted to researching alternative investments.
• E)None of the above

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Definitions:

Conflicting Forces

Opposing factors or influences that create tension within a situation, process, or system, impeding progress or resolution.

Labour Demand

The total quantity of workers that employers are willing and able to hire at a given wage rate in a certain period.

Simulation

A method for modeling a real phenomenon with a set of mathematical formulas and algorithms to study its behavior under various scenarios.

Forecasting HR Demand

The process of estimating the future human resource requirement of an organization, based on its business strategy, objectives, and level of operational activity.