The Fair Value of an Investment Is the Price

question 7

Multiple Choice

The fair value of an investment is the price:

• A)at the time of acquisition of the investments.
• B)that would be used if the company were to sell the investments on the market.
• C)that is always equal to the weighted average cost of the investment.
• D)that is equal to the average cost of the investment during the holding period.

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Definitions:

Genus

A category of classification in biology that ranks above species and below family, grouping species that share common characteristics.

Canadian

Pertaining to Canada or its people, culture, and characteristics.

Pastime

An activity that one does regularly for enjoyment rather than work; a hobby or leisure activity.

Genus

A class or group of entities that share common characteristics, often used in biology to classify organisms but also applicable in logic and philosophy.