Which of the Following Statements Is Correct

question 17

Multiple Choice

Which of the following statements is correct?

• A) Expected returns as estimated by a marginal investor are sometimes positive,but realized returns are always negative.
• B) Expected returns as estimated by a marginal investor are always positive,but realized returns are sometimes negative.
• C) Expected returns as estimated by a marginal investor are sometimes negative,but realized returns are always positive.
• D) Expected returns as estimated by a marginal investor are always negative,but realized returns are sometimes positive.

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Definitions:

Wound Up

Completing or finalizing affairs, often in the context of dissolving a company and distributing its assets.

Liquidated

A term referring to a debt or obligation that has been determined, settled, or resolved.

Net Assets

The total assets of a company minus its total liabilities, representing the owners' equity in the company.

Distribution Order

An official directive detailing how the assets of a deceased or bankrupt person should be allocated among claimants or heirs.