An analyst observes that the historic geometric returns are 9% for equities,3% for treasury bills, and 2% for inflation. The real rate of return and risk premium for equities are closest to:
A. 5.8% and 3.7%.
B. 6.9% and 3.8%.
C. 6.9% and 5.8%.
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Under IFRS, which of the following financial statement elements most accurately represents inflows of economic resources to a company?
Assets.
B. Equity.
C. Revenues.
An investor purchases 100 shares of stock at a price of $40 per share. The investor holds the stock for exactly one year and then sells the 100 shares at a price of $41.50 per share. On the date of sa
A. 3.75%.
B. 8.43%.
C. 8.75%.
According to the IFRS framework, which of the following is the least likely qualitative characteristic that makes financial information useful?
A. Materiality.
B. Comparability.
C. Understandability.
The consumer price index (CPI) this year is 252. The CPI last year was 246. The inflation rate this year is closest to:
A. 2.38%.
B. 2.44%.
C. 6.00%.