The Return Expected from an Asset Is Fully Defined by Its

question 13

Multiple Choice

The return expected from an asset is fully defined by its ________.

• A) risk and cash flow
• B) cash flow and timing
• C) discount rate
• D) beta

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Definitions:

Operating Activities

Transactions and events that pertain to the core business functions of an organization, influencing net income.

Inventory Decrease

A reduction in the quantity of goods held in stock by a company.

Investing Activities

Transactions involving the purchase and sale of long-term assets or investments, part of a company’s cash flow.

Cash Payments

Financial transactions involving the outflow of cash to settle obligations or purchase goods and services.