When comparing investments with different horizons, the ____________ provides the more accurate comparison. A. effective annual rate B. average annual return C. historical annual average D. arithmetic average

Quarterly Rates of return are calculated for all properties included in the index and are based on Which two distinct components of return?

Annuity Present Value Inputs Payment Discount Rate/Period Number of Periods Present Value using a Time Line Period Cash Flows Present Value of Each Cash Flow Present Value Annuity Present Value using the Formula Present Value Annuity Present Value using the PV Function Present Value

Which of the following can be used to place capital investment proposals involving different amounts of investment on a comparable basis for purposes of net present value analysis? a. future value index b. price-level index c. rate of investment index d. present value index

n is the number of periods of an investment, PV is the starting value, FVn is the future value n periods ahead, and ^ means 'to the power of'. What is the correct formula for calculating return? a)(PV/FVn)^n - 1 b)(FVn/PV)^n c)1 - (FVn/PV)^n d)(FVn/PV)^n - 1

The formula for calculating the discount rate to use in net present value (NPV) calculations is as follows: PV = 1 + (1+r)" Where 'n' represents: OA. The number of years you are investing OB. The cost of capital - stated as a percentage OC. The initial investment OD. The cost of capital - stated as a decimal

Which of the following are the key factors when determining asset allocation for an investment? I. Time an investor has until he needs to use the money from the investment (time horizon) II. Risk preferences (tolerance for risk) III. Current financial situation   a. I., II., & III.   b. I. & III.    c. II. & III.   d. I. & II.

What is the investor’s expected after-tax internal rate of return on equity invested (ATIRR)?

Which of the following tools is sometimes used to rank investment proposals? 01. 02. 03. 04. 05. Project assessment guide (PAG). Investment opportunity index. Annuity index. Profitability index. Capital ranking index.

What does the Excel argument Nper refer to? Number of periods of time for a loan or investment. The constant periodic payment required to pay off a loan or investment. Periodic interest rate. Present value of an investment.