In General,when an Investment Is More Liquid,the Return You Receive

question 57

Multiple Choice

In general,when an investment is more liquid,the return you receive will be

• A)lower.
• B)higher.
• C)less predictable.
• D)Liquidity does not affect return.

---

Definitions:

Assumes Liabilities

The process by which one party takes on the legal responsibility for the debts or obligations of another party.

Fair Values

The market value of selling an asset or the outlay for a liability transfer in a negotiated agreement among trading participants at the time of estimation.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of the identifiable net assets of the acquired business.

Appendix B

Generally, this term would refer to additional supporting information found at the end of a document, book, or publication, but without a specific context, it is too broad for a unique definition.