Return on Risk Capital Primarily Includes

question 38

Multiple Choice

Return on risk capital primarily includes

• A) stock price appreciation plus dividends received over a specific period.
• B) consumer surplus plus firm profit.
• C) account receivables plus account payables.
• D) economic value created by a firm plus reservation price.

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Definitions:

Stipulated Time

A specific period designated in an agreement or contract by which a certain action must be completed or fulfilled.

Market Value

Market value is the estimated price at which an asset or service would trade in a competitive auction setting.

Employment Contract

A formal agreement between an employee and employer outlining job duties, compensation, and terms of employment.

Option Contract

A contract which grants the holder the right, but not the obligation, to buy or sell an asset at a set price on or before a certain date.