If You Sell Stock from Your Portfolio to Pay Off

question 10

Multiple Choice

If you sell stock from your portfolio to pay off your car loan,your debt ratio of 0.5 will

• A)increase.
• B)decrease.
• C)stay the same.
• D)More data is needed to determine what affect this action will have.

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Definitions:

Excessive Profits

Earnings that significantly exceed the norm for a industry or market, often viewed critically in terms of business ethics or competition fairness.

Equivalent Risk

A concept in finance and investments referring to two or more investment options that have the same level of risk.

Hypercompetition

A condition in the market characterized by rapid and intense competitive moves, where advantages are quickly eroded.

Intermittent Profits

Earnings that are not consistent or regular, often fluctuating due to various external or internal factors.