The Capital Gains Yield Plus the Dividend Yield on a Security

question 2

Multiple Choice

The capital gains yield plus the dividend yield on a security is called the:

• A)variance of returns.
• B)geometric return.
• C)average period return.
• D)current yield.
• E)total return.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, represented as an expense on the income statement, affecting net income.

Adjusting Entry

Journal entries made at the end of an accounting period to update income and expense accounts so that the income statement reflects the revenues earned and expenses incurred during the period.

Interest-Bearing Note

A debt security that pays interest to the holder at regular intervals until maturity, at which point the principal is repaid.

Proceeds

The total amount of money received from a transaction before any deductions are made.