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Chapter Review: True or False Quiz
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This online quiz contains 7 questions. Click on the button next to the selection that best answers the question. To review your results, click on the Submit Answers button displayed after the last question. Good luck!

1
Rate of return is defined as the rate of interest paid on the principal of a loan or investment.
A)TRUE
B)FALSE
2
It makes no difference in the final answer whether a rate of return equation is written in terms of P, A, or F.
A)TRUE
B)FALSE
3
In simplifying cash flow for the purpose of estimating the rate of return, moving a uniform series of receipts to the present as a single value will yield an estimated interest rate that is lower than the actual one.
A)TRUE
B)FALSE
4
If the algebraic signs on the cash flows change more than once, the cash flow series is said to be non-conventional.
A)TRUE
B)FALSE
5
When using the rate of return method, multiple i* values can always be determined when the rule of signs (Descartes' rule) has more than one change in algebraic signs.
A)TRUE
B)FALSE
6
If the cumulative cash flow series changes sign three times, this means that there is one real and two imaginary interest rate values that satisfy the equivalence equation.
A)TRUE
B)FALSE
7
When multiple rates of return are indicated for a cash flow series, it is necessary to have a reinvestment rate that is exactly equal to an i* (that balances the ROR relation) in order to determine the unique composite rate of return i'.
A)TRUE
B)FALSE







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