The Calculation of a Rate of Return Assumes Dividend Income

question 17

True/False

The calculation of a rate of return assumes dividend income is reinvested at the current dividend yield.

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Definitions:

Fixed Factor

A resource in the production process whose quantity cannot readily be changed in the short term.

Production

The process of creating goods or services by combining various inputs in order to make products that are suitable for consumption or further production.

Increasing Returns To Scale

A situation in production where an increase in the scale of inputs leads to a more than proportional increase in output.

Weak Axiom

In consumer theory, it refers to the consistency of consumer choice behavior under the assumption of non-increasing preferences.