Which of the Following Is NOT a Correct Statement About

question 6

Multiple Choice

Which of the following is NOT a correct statement about income yield?

• A)It is one of the two components of the total return on an investment.
• B)It is the return earned in the form of a periodic cash flow received by the investors.
• C)The periodic cash flows received by investors are interest payments from bonds and dividends from equities.
• D)It measures the periodic cash receipts by dividing it by the selling price of the security.

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Definitions:

Strong Generalization

A statement about all members of a group or category that is made on the basis of evidence for some members, assuming it applies universally with little to no exceptions.

Single Instance

A reference to an argument or conclusion drawn from one example or case, which may not be sufficiently representative.

Representative

An individual who acts on behalf of others, typically in a legislative or formal setting, or a sample that accurately reflects the characteristics of a larger group.

Induction

A method of reasoning that moves from specific instances to form general conclusions or theories.