All Else Equal,an Individual Investor Would Prefer ________ Even If

question 5

Multiple Choice

All else equal,an individual investor would prefer ________ even if rates on both are equal,since ________ can be deferred.

• A)dividends to capital gains; dividends
• B)dividends to capital gains; capital gains
• C)capital gains to dividends; capital gains
• D)Investors are indifferent to capital gains vs dividends.

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Definitions:

IQ

Stands for Intelligence Quotient, a standardized score derived from a set of tests designed to measure human intelligence.

Interpret Correlation

A statistical measure that describes the extent to which two variables change together, and thus how well one variable can predict the other.

Establish Causation

The process of demonstrating that one factor directly influences or causes an effect on another factor.

Illusory

Based on illusion; not real or caused by false perceptions or interpretations.