Which of the following definitions of investor returns is false?
A. Can be decided for a given level or risk
B. Can be determined by using "classical" statistical analysis
C. Have an investment outcome with the lowest expected risk
D. Are not based on capital appreciation
Returns on Investments:
Return is the most fundamental concept of finance, be it personal finance or corporate finance. It is the value than an investment generates for an investor. It is an inducement to invest money in a certain asset. Given the choice between two investment alternatives, the one with a higher return will be preferred by a rational investor.
Answer and Explanation:
The correct answer is: Option D. Are not based on capital appreciation. Capital appreciation and interest/dividend income are the two components of...
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fromChapter 25 / Lesson 6