Which of the Following Statements About Birth Order Is True

question 37

Multiple Choice

Which of the following statements about birth order is true?

• A)Firstborns always receive the most parental investment in families with three or more children.
• B)Middleborns end up receiving less total parental investment even if the parents divide their investment equally among all the children present in the household at a given time.
• C)Lastborns always receive the least parental investment if the parents divide their investment equally among all the children present in the household at a given time.
• D)Middleborns end up receiving more total parental investment,particularly if the parents divide their investment equally among all the children present in the household at a given time.

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Definitions:

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and satisfy its shareholders and creditors.

NPV

Net Present Value - a calculation used to assess the profitability of a project or investment by summing the present values of all cash flows associated with it.

IRR

Internal rate of return. A capital budgeting technique that rates projects according to their expected return on invested funds. The higher the return the better.

MIRR

Modified Internal Rate of Return (MIRR) is a financial metric that evaluates the profitability of investments, adjusting the internal rate of return (IRR) to account for the reinvestment of cash flows at a different rate.