In an ideal world, which of the following would be used to evaluate firm performance?
A) accounting assets and profits
B) book value of assets
C) market value of assets
D) corporate retained earnings from the day of incorporation
Question 2
The principle of risk-return trade-off means that
A) higher risk investments must earn higher returns.
B) an investor who takes more risk will earn a higher return.
C) an investor who bought stock in a small corporation five years ago has more money than an
investor who bought U.S. Treasury bonds five years ago.
D) a rational investor will only take on higher risk if he expects a higher return.
Evaluate the angle of the nail base
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