An Asset's Return on Investment Has Two Components, One of Which

question 169

Multiple Choice

An asset's return on investment has two components, one of which is ____________, which reflects the cash you receive directly while you own the investment.

• A) the capital gain
• B) the income component
• C) your reward for bearing risk
• D) your total dollar return
• E) your gross return on that investment

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Definitions:

Sports Fans

Individuals enthusiastically devoted to following and supporting athletic games and teams.

College Students

Individuals who are enrolled in an institution of higher learning, working towards earning a degree or certificate.

Binomial Distribution

A probability distribution that summarizes the likelihood that a value will take one of two independent states and is based on a fixed number of trials.

P(X = 1)

The probability that a random variable X takes the value 1, a specific outcome in a probability distribution.