Which of the Following Is NOT an Investment Likely to Be

question 46

Multiple Choice

Which of the following is NOT an investment likely to be found in any proxy for the market portfolio?

• A)Human capital
• B)Stocks
• C)Bonds
• D)Precious metals

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Definitions:

Capital Lease

A lease agreement in which the lessee essentially acquires all the risks and rewards of ownership, akin to a financial purchase.

Operating Lease

A leasing agreement for the use of an asset, where the lessee does not assume the risk of ownership.

Benefits and Risks

An assessment of the positive outcomes (benefits) and potential negative outcomes (risks) associated with a decision or action.

Straight-Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal installment.