Futures Contracts Usually Focus on All of the Following Except

question 82

Multiple Choice

Futures contracts usually focus on all of the following except

• A)soybeans.
• B)orange juice.
• C)rubber.
• D)coffee.

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Definitions:

Average Accounting Return

A measure of investment profitability calculated as the average annual net earnings of a project divided by the average investment in the project.

Straight-Line Method

An accounting method for allocating the cost of an asset evenly over its useful life.

Cost of Capital

The obligatory profit percentage a corporation needs to achieve on its investments to keep its market share and attract investors.

IRR

Internal Rate of Return; a financial metric used to evaluate the profitability of investments, representing the discount rate that makes the net present value (NPV) of all cash flows equal to zero.