Which of the Following Is Most Accurate If Bobby Is

question 151

Multiple Choice

Which of the following is most accurate if Bobby is under the age 10?

• A)He is less likely to be poor because he is under the age of ten and teens make up most of youth poverty.
• B)He has the same chance of being poor because all age groups are equally likely to be poor.
• C)He is more likely to be poor because children are the age group most likely to be poor.
• D)He is less likely to be poor because the elderly are the age group most likely to be poor.

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Definitions:

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, used to determine the rate of return a company must earn on its existing assets to satisfy its creditors, owners, and other providers of capital.

Low Risk Projects

Investments or projects that are considered to have a lower probability of resulting in a financial loss.

Investor Risk Aversion

The tendency of investors to prefer lower-risk investments to avoid potential losses.

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.