If the Dow Jones Industrials Had a Price Appreciation of 6

question 50

Multiple Choice

If the Dow Jones Industrials had a price appreciation of 6 percent one year and yet total return for the year was 9 percent, the difference would be due to:

• A) the tax treatment of capital gains.
• B) the cumulative wealth effect.
• C) dividends.
• D) inflation.

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Definitions:

Coefficient Of Determination

A statistical measure represented by the symbol R², indicating the proportion of the variance in the dependent variable predictable from the independent variable(s).

Degrees Of Freedom

The number of independent values in a statistical calculation that are free to vary, often related to the number of observations in a dataset minus the number of constraints.

Sample Size

The number of individuals or instances taken from a larger population for the purpose of statistical analysis.

Independent Variables

Variables in an experiment or model that are manipulated or classified to observe their effect on dependent variables.