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The Risk-Free Rate of Return Is Often Measured by the Return

question 88

True/False

The risk-free rate of return is often measured by the return on U.S.Treasury bills.

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Definitions:

Invest

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Double Taxation

A situation where the same income is taxed twice, typically once at the corporate level and again at the personal level when distributed as dividends.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and has its own rights, privileges, and liabilities.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them a right to a portion of the corporation's profits.

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