In the Calculation of Rates of Return on Common Stock

question 117

Multiple Choice

In the calculation of rates of return on common stock, dividends are _______ and capital gains are ______.

• A) guaranteed; not guaranteed
• B) guaranteed; guaranteed
• C) not guaranteed; not guaranteed
• D)not guaranteed; guaranteed

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Definitions:

Full-Service Broker

A financial services professional who provides a wide range of investments advice and management, including research and personalized advice.

Discount Broker

A brokerage firm that provides transaction execution services without offering investment advice, often at lower costs than full-service brokers.

Commission Fee

A service charge assessed by a broker or agent for facilitating a transaction, typically a percentage of the transaction amount.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which may not coincide with the calendar year.