The Minimum Rate of Return You Would Like to Receive

question 84

Multiple Choice

The minimum rate of return you would like to receive in compensation for the amount of risk you have assumed is the

• A)desired rate of return.
• B)actual rate of return.
• C)exact rate of return.
• D)approximate yield.
• E)none of these.

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Definitions:

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or proprietors.

Revenues

The total amount of income generated from the sale of goods or services related to a company’s primary operations.

Expenses

The costs incurred in the process of generating revenue, typically categorized as operating or non-operating expenses.

Owner's Equity Statement

A financial document showing the changes in the value of a business owner's equity over a period of time.