In General, When an Investment Is More Liquid, the Return

question 111

Multiple Choice

In general, when an investment is more liquid, the return you will receive will be

• A)lower.
• B)higher.
• C)less predictable.
• D)Liquidity does not affect return.

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Definitions:

Profits

Net income that remains after all operating expenses, interest, taxes, and dividends have been deducted from total revenue.

Critical Thinking

The ability to objectively analyze and evaluate an issue or situation to form a judgement, by questioning assumptions and identifying biases.

Social Responsibility

Social Responsibility involves businesses and individuals acting in ways that benefit society at large, beyond their own interests or profits.

Business

The organized efforts and activities of individuals to produce and sell goods and services for profit.