Which of the Following Statements Is False

question 60

Multiple Choice

Which of the following statements is false?

• A) The actual return kept by an investor will depend on how the interest is taxed.
• B) The equivalent after-tax interest rate is r(1 - τ).
• C) The highest interest rate for a given horizon is the rate paid on Treasury Bills of the Government of Canada.
• D) It is important to use a discount rate that matches both the horizon and the risk of the cash flows.

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Definitions:

Self-worth

The evaluation of oneself in terms of value or worthiness.

Self-serving Bias

The common habit of a person taking credit for positive events or outcomes, but blaming outside factors for negative events.

Success

The achievement of set goals or the attainment of wealth, position, honors, or the like.

Efforts

The use of physical or mental energy to achieve something.