The Return Measure That an Investor Demands for Giving Up

question 80

Multiple Choice

The return measure that an investor demands for giving up current use of funds, without adjusting for purchasing power changes or the real rate of return, is the

• A) risk premium.
• B) inflation premium.
• C) dividend yield.
• D) discount rate.

---

Definitions:

Amplitude

The extent or range of a vibratory movement, measured from the position of equilibrium, commonly used to describe the magnitude of sound waves or other oscillations.

Frequency

The number of occurrences of a repeating event per unit of time, often used in the context of waves (such as sound or light) to indicate cycles per second (Hz).

Timbre

The quality of a musical note or sound that distinguishes different types of sound production, such as voices or musical instruments.

Wavelength

The distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave.