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Each Stock's Rate of Return in a Given Year Consists

question 3

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Each stock's rate of return in a given year consists of a dividend yield (which might be zero)plus a capital gains yield (which could be positive,negative,or zero).Such returns are calculated for all the stocks in the S&P 500.
-A simple average of those returns (which gives equal weight to each company in the S&P 500)is then calculated.That average is called "the return on the S&P Index," and it is often used as an indicator of the "return on the market."


Definitions:

Piaget's Theory

A framework proposed by Jean Piaget that outlines how children's cognitive abilities develop through a series of stages as they grow.

Deferred Imitation

The ability to remember and replicate an action observed at an earlier time, without the model being present.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, from birth to about 2 years, where infants learn about the world through their senses and actions.

Cognitive Development

The process of growth and change in intellectual capabilities which influence a person's behavior and learning ability.

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