The TSX Index Had a Return of 12 Percent and Apple

question 28

Multiple Choice

The TSX Index had a return of 12 percent and Apple Inc.had a return of two percent over the same six month period.What can you say about whether your purchase of Apple Inc.was a good decision?

• A)Nothing because the TSX Index is not a relevant comparison for an American company.
• B)Your analysis of Apple was poor.
• C)Apple is always a good company to buy,but this was too short a time to compare.
• D)Comparing returns with an Index is irrelevant.

---

Definitions:

Incentive Compensation

A system of pay based on performance, aiming to motivate employees through rewards tied to achieving specific goals or benchmarks.

Net Profits

The amount of money that remains from revenues after all operating expenses, interest, taxes, and preferred stock dividends have been deducted; a key indicator of a company's financial health.

Bonus Pay

Additional compensation given to employees beyond their regular salary, typically as a reward for achieving certain goals or exceptional performance.

Lump-sum Payments

One-time payments made for the entire amount of an obligation or transaction, as opposed to installments.