The rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as _________?

Related Mcqs:

1. The rate of required return to cover the risk of investment, in absence of inflation is classified as ____________?

   A. real rate of return B. required rate of return C. nominal rate of return D. none of above...

2. The rate of return, which is made up of risk free and business risk element is known as _____________?

   A. nominal rate of return B. accrual accounting rate of return C. real rate of return D. required rate of return...

3. If the real rate is 16% and an inflation rate is 8%, then the nominal rate of return will be __________?

   A. 27.28% B. 25.28% C. 22.28 D. 21.28...

4. The decrease in purchasing power of any monetary unit such as euro, dollars etc. is classified as ___________?

   A. net investment parity B. inflation C. purchasing parity D. buying parity...

5. If the nominal rate is 26% and the inflation rate is 12%, then the real rate can be __________?

   A. 13.75% B. 11.65% C. 12.50% D. 13.50%...

6. If the invested capital is $150000 and target rate of return on investment is 16%, then the targeted annual operating income would be ___________?

   A. $27,000 B. $26,000 C. $24,000 D. $25,000...

7. An investment is multiplied to required rate of return, to calculate: _____________?

   A. congruent cost of investment B. transfer cost of investment C. operating cost of investment D. imputed cost of investment...

8. If the required rate of return is 13%, operating income is $375000 and the total investment is $2650000, then the residual income would be ____________?

   A. $30,500 B. $20,500 C. $25,500 D. $32,500...

9. The return on investment is also known as _____________?

   A. accrual accounting rate of return B. accounting rate of return C. nominal rate of return D. both a and b...

10. If the net initial investment is $985000, returned working capital is $7500, then an average investment over five years will be ___________?

    A. $596,300 B. $485,300 C. $496,250 D. $486,250...