Which of the Following Statements Is Correct

question 108

Multiple Choice

Which of the following statements is correct?

• A) Neither stocks nor bonds are financial assets.
• B) Stocks are financial assets but bonds are not.
• C) Bonds are financial assets but stocks are not.
• D) Both stocks and bonds are financial assets.

---

Definitions:

Dividend Yield

The ratio of a company's annual dividend payments to its share price, indicating the earning potential from dividends for investors.

Required Return

An annual return rate set as the minimum to attract investment from persons or entities into a specific security or project.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividends per share.

Dividend Amount

Dividend amount is the sum paid to shareholders out of a company's earnings, typically on a per-share basis.