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Joe is a shareholder of XYZ Corporation, an extremely profitable corporation in the software business, and was upset when the directors of the corporation refused to declare a dividend again, ploughing the money back into research and development. Joe sued, along with several other shareholders, claiming that there was no excuse for withholding dividends under these circumstances. Explain the likely outcome.
Total Expense Ratio
The total cost of operating a fund, including management fees and administrative expenses, expressed as a percentage of the fund's average assets.
Income Dividend
A payment made by a corporation to its shareholders, usually as a distribution of profits.
Rate of Return
The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.
Portfolio Beta
A measure of the volatility of a portfolio compared to the market as a whole, indicating the expected percentage change in a portfolio's value for a 1% change in the market.
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