Which of the Following Statements Is Not True Regarding Individual

question 51

Multiple Choice

Which of the following statements is not true regarding individual investors?

• A) They commonly invest a portion of the money earned from their jobs.
• B) They invest in stocks to earn a reasonable return on their investments.
• C) They expect their money to grow by the time they wish to use it to make purchases.
• D) The percentage of individual Americans who own stocks has increased since the financial crisis of 2008-2009.

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Definitions:

NPV

Net Present Value, a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Net Advantage to Leasing (NAL)

A calculation used to determine the financial benefits of leasing an asset as opposed to purchasing it.

NPV

Net Present Value, a financial metric that evaluates the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

Operating Lease

An agreement permitting the utilization of an asset without transferring ownership rights to the user.