CHAPTER 1 QUIZ 46 TO 50
46. One of the problems that investors face in determining required rates of return is forecasting errors involving interest rates and inflation.
True False
47. Every investment requires a total return comprised of a real rate of return, compensation for inflationary expectations, and a risk premium.
True False
48. Beta measures a security's return relative to the market.
True False
49. Prior to the Taxpayer Relief Act of 1997, long-term capital gains were taxed at ordinary income tax rates.
True False
50. The Tax Act of 2001 lowered the capital gains tax rate.
True False
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