Return may be thought of as:Select one:a. Obtained only if the company pays dividends; without dividends, return is 0b. The growth in the value of an investmentc. The risk associated with an investmentd. The process of returning the stock to the corporation that issued it
Question
Return may be thought of as:Select one:a. Obtained only if the company pays dividends; without dividends, return is 0b. The growth in the value of an investmentc. The risk associated with an investmentd. The process of returning the stock to the corporation that issued it
Solution
The correct answer is b. The growth in the value of an investment. Return on an investment can be thought of as the increase in its value over time, which can come from a variety of sources such as dividends, capital gains, and interest. It is not solely dependent on dividends, nor is it the risk associated with an investment or the process of returning the stock to the corporation that issued it.
Similar Questions
Return on investment is a measure of:a.The profitability of a project or investmentb.The time required to recover the initial investmentc.The risk associated with an investmentd.The present value of future cash flows
_____ returns are the total returns earned by an investor during the time period for which the investment is held.a. Holding periodb. Annualisedc. Expectedd. Future
is the probability of getting return. It is measured in terms of deviation between actual return and expected return.*PortfolioInvestmentReturnDerivativeRisk
Which financial statement is used to calculate the return on investment for shareholders?Question 18Answera.Balance sheetb.Income statementc.Statement of retained earningsd.Statement of cash flows
What is the purpose of understanding the concept of return in investment?Question 9AnswerA.To eliminate the need for diversificationB.To compare different investment optionsC.To time the market for optimal profitsD.To guarantee fixed returns
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.