Which of the Following Investment Options Is the Most Profitable

question 26

Multiple Choice

Which of the following investment options is the most profitable in percentage terms?

• A) A government bond with a coupon payment of $10, purchased at $100 and sold at $90 after a year.
• B) A government bond with a coupon payment of $15, purchased at $175 and sold at $155 after a year.
• C) A share with a dividend payment of $5, purchased at $50 and sold at $60 after a year.
• D) A Treasury bill purchased at $160 and sold at $175 after a year.

Identify the elements required for a valid gift transaction, including delivery and acceptance.

Recognize the principles of bailment and the rights and obligations of the bailor and bailee.

Differentiate between types of property insurance and understand the basics of insurance policy terms.

Comprehend the concept of accession and how it affects ownership rights.

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Definitions:

Cash Inflows

Money received by a business from its activities, e.g., sales of goods, provision of services, loans received.

Cash Outflows

Cash Outflows are the amounts of money paid out by a business in a period, including expenses, investments, and loans repayments.

Profitability Index

A calculation used to determine the relative profitability of an investment, computed by dividing the present value of future cash inflows by the initial investment cost.

Payback Technique

A method of evaluating investments by determining the length of time it will take to recoup the original investment amount.