Which of the Following Statements with Respect to a Like-Kind

question 85

Multiple Choice

Which of the following statements with respect to a like-kind exchange is false?

• A)Property of one class must be exchanged for property of the same class.
• B)An exchange of inventory does not qualify as a like-kind exchange.
• C)Personal property must be exchanged for personal property.
• D)A sale of property and subsequent purchase of like-kind property will always qualify as a like-kind exchange.

---

Definitions:

Risk-Free Rate

The theoretical return on an investment with zero risk, typically associated with government bonds.

Security's Beta

A measure of a stock's volatility in comparison to the overall market; a beta greater than 1 indicates higher volatility than the market, while a beta less than 1 indicates lower volatility.

Security Market Line

A line that represents the relationship between risk and expected return in capital market theory, often used in the capital asset pricing model.

Beta

Beta is a measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates that the stock is more volatile than the market, while a beta less than 1 means it is less volatile.