Which One of the Following Statements Related to Capital Gains

question 81

Multiple Choice

Which one of the following statements related to capital gains is correct?

• A) The capital gains yield includes only realized capital gains.
• B) An increase in an unrealized capital gain will increase the capital gains yield.
• C) The capital gains yield must be either positive or zero.
• D) The capital gains yield is expressed as a percentage of a security's total return.
• E) The capital gains yield represents the total return earned by an investor.

Analyze situations to determine when a principal is or is not bound by the actions of an agent.

Understand the concepts of actual, implied, and apparent authority and how they affect the liability and responsibilities of agents and principals.

Recognize the legal consequences of an agent’s breach of fiduciary duty.

Comprehend the significance of estoppel in agency relationships.

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Definitions:

Independence

The condition or quality of being self-reliant and free from outside control or support.

Rationality

Rationality refers to the quality or state of being logical or reasonable, based on facts or reason rather than emotions or personal bias.

Helpfulness

The quality of providing useful assistance or being willing to help others.

Master's Degrees

Graduate-level academic degrees awarded by universities upon completion of a course of study demonstrating mastery or a high-order overview of a specific field of study or area of professional practice.