Which of the Following Is Not Among the Usual Constraints

question 44

Multiple Choice

Which of the following is not among the usual constraints and preferences considered when formulating an investment policy?

• A)Avoidance of so-called "sin" stocks (alcohol,tobacco,firearms,etc.)
• B)Liquidity needs
• C)Economic assessment
• D)Time horizon

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Definitions:

Payback Period

The length of time it takes to recover the initial investment in a project, often used to assess the risk of investments.

Scrap Value

The projected value of an asset when it reaches the end of its operational life.

Net Operating Income

A measure of a company's profitability from regular business operations, excluding deductions of interest and taxes.

Payback Period

The time required for an investment to generate cash flows sufficient to recover the initial investment cost.