Measures of Risk for an Investment Include

question 66

Multiple Choice

Measures of risk for an investment include

• A) variance of returns and business risk.
• B) coefficient of variation of returns and financial risk.
• C) business risk and financial risk.
• D) variance of returns and coefficient of variation of returns.
• E) variance of returns and economic risk.

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Definitions:

Average Provincial Tax Rate

The Average Provincial Tax Rate is the average rate of tax imposed by a province on income, which can vary depending on the income level and specific province.

Average Tax Rate

The ratio of total taxes paid to total income, representing the percentage of income paid in taxes.

Capital Gains

The profit earned from the sale of an asset that has increased in value over the holding period, subject to taxation.

Non-Eligible Dividends

Dividends paid from income that has not been taxed at the corporate level, often subject to a different tax rate on the recipient's end.