To Determine the Compounded Annual Rate of Return on Investments

question 91

Multiple Choice

To determine the compounded annual rate of return on investments held for more than a year, investors typically use the present-value-based measure known as yield or

• A) holding period return.
• B) internal rate of return.
• C) inflation-adjusted return.
• D) simple return.

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Definitions:

Offer Price

The price at which an entity is willing to sell shares or securities to potential buyers.

Venture Capitalist

An investor who provides capital to startup companies and small businesses with perceived long-term growth potential in exchange for an equity stake.

Lifecycle

The series of changes in the life of an organism, product, or system from its beginning to its end.

Screening Opportunity

The process of evaluating business opportunities to determine their viability and potential for success.