Reference no: EM132485750

Question 1. ___ hold(s) that, in general, only a higher positive return can offset any negative return.

Option a. The rule of 72

Option b. Compounding

Option c. The agency problem

Option d. Return asymmetries (My choice)

Question 2. Which of the following is a feature of an efficient market?

Option a. Prohibitively high barriers to entry

Option b. Few buyers and sellers (My Choice)

Option c. Information restricted to certain well-connected participants

Option d. Low trading or transaction costs.

Question 3. To analyze performance meaningfully, what must ratio results be interpreted against?

Option a. A standard or benchmark

Option b. The time value of money (TVM)

Option c. The discount rate

Option d. ROE (Return on Equity) (My Choice)

Question 4. You're thinking about buying a car. You can afford $800 in monthly payments for 3 years. If interest rates are 7 percent APR, what price of car can you afford?

Option a. $25,909.17

Option b. $26,452.82 (First choice)

Option c. $28,621.18 (Second Choice)

Option d. $29,541.23