Choose the Word or Phrase in [ ] Which Will

question 134

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-If you liquidate assets or borrow to make your budget balance,this will [increase | decrease] your net worth.

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Definitions:

Risk Premium

The additional return expected by an investor for holding a risky asset over a risk-free one, compensating for the higher risk.

Equity Investing

The act of purchasing shares of stock in companies with the expectation of earning dividends or selling the shares at a higher price in the future.

Returns

Refers to the profit or loss generated by an investment over a specified period.

Equity Returns

The profits earned on investments in equity or stocks, often measured as the increase in value plus dividends received relative to the investment's original cost.