Which of the Following Is NOT a True Statement

question 95

Multiple Choice

Which of the following is NOT a true statement?

• A)The capital gain yield measures the appreciation in the price of the asset from some starting price.
• B)Common shares should lose from inflation over the long run as their prices and cash flows are not fixed.
• C)The capital loss yield measures the depreciation in the price of the asset from the purchase price.
• D)The addition of the capital gain (or loss)yield explains why the yield gap between equities and bonds has varied so much over time.