What Is the Increase in the Dollar Value of an Investment

question 84

Multiple Choice

What is the increase in the dollar value of an investment known as?

• A) Dividend payout
• B) Total return
• C) Interest yield
• D) Capital gain
• E) Price appreciation

Distinguish between systematic risk, unsystematic risk, total risk, and their relevance to portfolio management.

Calculate and interpret the expected return on assets and portfolios under various economic states.

Understand the role of the risk-free rate and market rate of return in determining asset pricing.

Identify the relationship between risk and return and the significance of the Security Market Line (SML).

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, determined by physical counts or accounting methods.

LIFO

Stands for Last In, First Out, an inventory valuation method where the most recently produced or purchased items are recorded as sold first.

Periodic Inventory System

An inventory accounting system where inventory counts are performed and updated at specific intervals to determine cost of goods sold and ending inventory levels.

Ending Inventory

The value of goods available for sale at the end of an accounting period. It is the beginning inventory plus purchases minus the cost of goods sold.