With Regard to Shares as an Asset Class, Nominate the Correct

question 23

Multiple Choice

With regard to shares as an asset class, nominate the correct statement below:

• A) Shares are generally considered a relatively high-risk and high-return investment and are suit able for longer-term investors.
• B) Shares have similar risks to listed property trusts.
• C) By investing in companies providing unfranked dividends, Australian investors can derive tax-effective returns by means of the dividend imputation system under which, given companies have already paid tax at the company tax rate, investors can use franking credits to offset the amount of tax they pay on dividends.
• D) Both a and b

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Definitions:

Diffusion of Innovations Theory

A social science theory that explains how, why, and at what rate new ideas and technology spread through cultures.

Sequential Process

A methodical process that follows a specific order or sequence of steps to achieve a particular outcome or goal.

New Product

An item or service that has been recently introduced to the market, offering novel features or benefits to consumers.

ROPES

Acronym for the PR process, standing for research, objectives, programming, evaluation, and stewardship.