Upon Getting into Your New Car,you Suddenly Became Worried That

question 55

Multiple Choice

Upon getting into your new car,you suddenly became worried that you might become injured in an auto accident.You decided to buckle your seat belt in response.You chose to ________ the risk of being injured in an auto accident.

• A) reduce
• B) share
• C) avoid
• D) accept

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Definitions:

Required Rate of Return

The minimum annual percentage earned that an investment must generate to avoid loss to the investor.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Cash Inflows

The total amount of money entering a company, typically from operations, financing, and investing activities.

Rate of Return

A measure of the profitability of an investment, indicating the percentage of invested money gained or lost relative to its initial cost.