An attitude of investor towards dealing with risk determines the____________?
Correct answer: A. Rate of return
- A. Rate of return
- B. Rate of exchange
- C. Rate of intrinsic stock
- D. Rate of extrinsic stock
Explanation
An investor’s risk tolerance influences the return required for accepting risk: more risk-averse investors generally demand a higher rate of return. Exchange rates and “intrinsic” or “extrinsic stock rates” do not measure this risk-return preference.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
Relevant information about stock market price if it is given, then this price is called______________?
Financial security issued by banks operating outside U.S is classified as___________________?
Markets which deal with buying and selling of bonds, mortgages, notes and stocks are considered as_____________?
Accounts payable, accruals and notes payable are listed on balance sheet as________?
In situation of bankruptcy, stock which is recorded above common stock and below debt account is_____________?
Values recorded as determined in marketplace are considered as_______________?