The Dollar Value of Stocks and Bonds Traded in a Given

question 7

Multiple Choice

The dollar value of stocks and bonds traded in a given year:

• A)​is included in the calculation of GDP.
• B)​have no influence on GDP.
• C)​is included in the calculation of private investment.
• D)​is not included in GDP, but the broker commissions involved are included in GDP.

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Definitions:

Required Return

The minimum expected return an investor anticipates or requires from an investment to compensate for its risk.

Financial Break-even

Financial break-even is the point at which a company's revenues exactly cover its expenses and financial charges, resulting in neither profit nor loss.

Net Present Value

The difference between the current value of cash inflows and the current value of cash outflows over a period of time, used to assess the profitability of an investment.