The Most Predictable Component of Stock Returns Is

question 72

Multiple Choice

The most predictable component of stock returns is

• A) capital gains.
• B) capital losses.
• C) inflation adjusted return.
• D) dividend income.

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Definitions:

Contra-Asset

An account displayed on the balance sheet that reduces the value of a related asset, such as accumulated depreciation.

Liability

Financial obligations, debts, or responsibilities owed by a business to others, to be settled over time through the transfer of economic benefits.

Invoice Approval Form

Used by the accounting department in checking the invoice and finally approving it for recording and payment.

Purchasing Department

A division within a business that is responsible for acquiring goods and services that are necessary for the company's operations.