Rate of return, which is made up of risk free and business risk element is known

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

Correct Answer: real rate of return

Rate of return, which is made up of risk free and business risk element is known as real rate of return. A real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external factors.
Bissoy MCQ
#Management #Management Accounting

Related Questions

Two friends M and N have 40% and 60% shares in a business. After some time a third friend joined the business by investing Tk 5 Lac and acquired 20% shares in the business. What is the share of M in the business now ?
A 20%
B 24%
C 28%
D 32%
Two friend M and N have 40% and 60% shares in a business. After some time a third friend joined the business by investing Tk. 5 lac and acquired 20% shares in the business. What is the share of M in the business now?
A 20%
B 24%
C 28%
D 32%
Market required return is subtracted from risk free rate which is used to calculate
A quoted risk premium
B market risk premium
C portfolio risk premium
D unquoted risk premium
Sum of market risk and diversifiable risk are classified as total risk which is equivalent to
A Sharpe's alpha
B standard alphas
C alpha's variance
D variance
An investor earns 3% return on 14th  of his capital, 5% on 23rd and 11% on the reminder. What is the average rate of return he earns on his total capital?
A 5%
B 5.5%
C 10%
D 10.5%
Typically, the entrepreneur is seen as an individual who owns and operates a small business. But simply to own and operate a small business- or ever a big business-dose not make someone an entrepreneur. If this person is a true entrepreneur, then new products are being created and new ways of providing services are being implemented . Which of the following conclusions can best be drawn from the above passage ?
A An owner of a large business may be an entrepreneur.
B Someone who develops an enterprise may be considered an entrepreneur.
C Entrepreneurs do not own and operate small businesses.
D Entrepreneurs are main actors in economic growth.
Identify the sentence in which the word element (s) refers to 'suitable or favourable environment. (1) There is an element of truth in your story. (2) Water is composed of elements of hydrogen and oxygen. (3) I feel out of my elements in political discussions. (4) Water is a natural element for fish
A (4)
B (3)
C (1) and (2)
D (1)
The __________ element must reference either an ‘altGlyphDef’ element or a ‘glyph’ element.
A href
B src
C animate
D altGlyph
(i) Finally the bureaucratic organization took over the pioneering enterprise. (ii) The 19th century was the age of entrepreneur, the self -made man . (iii) Thoughtful business administration took over action centered business entrepreneurship. (iv) In the 20th century the rational executive took command .
A (iv) + (ii) + (i) + (iii)
B (ii) + (iii) + (iv) + (i)
C (ii) + (iv) + (iii) + (i)
D (iii) + (i) + (ii) + (iv)
According to Black Scholes model, purchaser can borrow fraction of security at risk free interest rate which is
A short term
B long term
C transaction cost
D no transaction cost

Next steps