Amalgamated Monkey Nuts Inc

question 59

Multiple Choice

Amalgamated Monkey Nuts Inc.has a range of returns between 4 percent and 7 percent while Moose Pasture Minerals Ltd.has a range of returns between 3 percent and 10 percent.This means

• A)Amalgamated Monkey Nuts Inc.is a less risky stock.
• B)Moose Pasture Minerals Ltd.is a less risky stock.
• C)Amalgamated Monkey Nuts Inc.is a more risky stock.
• D)Moose Pasture Minerals Ltd.is a better investment.

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Definitions:

Significant Influence

Refers to the power to participate in the financial and operating policy decisions of an investee but is not control or joint control over those policies.

Voting Shares

Shares that give the shareholder the right to vote on corporate matters, such as electing the board of directors and approving policies.

Voting Shares

Shares of a company that give the shareholder the right to vote on corporate matters and board elections.

Associate

An entity over which an investor has significant influence, typically evidenced by owning 20% to 50% of the voting stock, but not control.