You Have $1000 to Invest

question 61

Multiple Choice

You have $1000 to invest.You invest the entire sum in a new technology company that you think is about ready to make it big.You tend to be ____________.

• A)risk-seeking
• B)loss-adverse
• C)risk-adverse
• D)impulsive

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Definitions:

Market Price Per Share

The current price at which a single share of a company's stock is bought or sold on the market.

Return on Equity

A measure of financial performance calculated by dividing net income by shareholder's equity, indicating how effectively management is using a company’s assets to create profits.

Gross Margin

The difference between sales revenue and the cost of goods sold, representing the profit made before accounting for operating expenses.

Net Operating Income

The total profit of a business after operating expenses are subtracted from gross profit but before incomes and taxes are deducted.