The Rate at Which the Value of an Investment Grows

question 38

Multiple Choice

The rate at which the value of an investment grows is called the:

• A)required return
• B)capital return
• C)maturity yield
• D)dividend yield
• E)capital gains yield

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Definitions:

Equilibrium Price

The price at which the supply of an item equals the demand for that item within a market, resulting in economic equilibrium.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.

Price Floor

A government- or authority-set minimum price that can be charged for a good or service, aimed at preventing prices from falling too low.

Equilibrium Price

A price level where the demand for a product matches the supply, ensuring that every buyer finds a seller and vice versa, leading to market stability.