Which of the Following Internal Characteristics Should Cause Investors to Expect

question 122

Multiple Choice

Which of the following internal characteristics should cause investors to expect the highest rate of return?

• A)a steady record of past dividends
• B)interest and principal guaranteed by the U.S.government
• C)a record of excellent management and consistent dividend payments
• D)poor management and excessive use of debt financing

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Definitions:

Continuous

Refers to data that can take any value within a given range.

Ratio

A relationship between two quantities indicating how many times the first number contains the second.

Relationship Between Variables

The way in which two or more variables are associated or interact with each other.

Strength

In statistics, often refers to the magnitude of a relationship between two variables.