The Total Return on a Security Is Computed as the Summation

question 86

Multiple Choice

The total return on a security is computed as the summation of the dividend income and the capital gain expressed as a percentage of the security's:

• A) Current book value.
• B) Average market value.
• C) Beginning market value.
• D) Ending market value.
• E) Average book value.

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Definitions:

Angel Investor

A prosperous person supplying financial support for a start-up business, often in exchange for ownership equity or convertible debt.

Post-money Valuation

The value of a company after external financing and injections of equity have been added to its balance sheet.

Entrepreneur

An individual who creates, organizes, and operates a business or businesses, taking on greater than normal financial risks.

$1 Million

Refers to the sum of one million dollars, a significant financial milestone for individuals and businesses.