Question

Who is the final judge of what constitutes an appropriate rate of return for shareholders?

a.

The actuary

b.

The company's management

c.

The market

d.

The regulatory authorities

Answer: (c).The market Explanation:While the actuary may make assumptions regarding the rate of return for shareholders, the market ultimately determines what is considered appropriate. The market's assessment of a company's shares, influenced by factors such as risk and investor demand, determines the rate of return required by shareholders.

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Q. Who is the final judge of what constitutes an appropriate rate of return for shareholders?

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