Which of the Following Would Be Considered an Asset Limited

question 16

Multiple Choice

Which of the following would be considered an asset limited as to use?

• A) Cash donated for an endowment.
• B) Cash from a federal research grant, which is to be used for water quality research.
• C) Cash the board of directors has designated for equipment acquisitions.
• D) Cash contributions that are to be used for the building fund.

---

Definitions:

Expected Return

The mean of all potential investment returns, adjusted for the probability of each result occurring.

Security's Beta

A measure of an investment's volatility compared to the market as a whole, indicating its risk in relation to the market.

Risk Premium

The extra return expected from an investment for taking on additional risk.

Security Market Line

A graphical representation of the expected return of an asset compared to its risk, as measured by beta.