The Rate of Return Is Equal to

question 47

Multiple Choice

The rate of return is equal to

• A) the coupon rate plus the rate of capital gains.
• B) the coupon rate plus the current yield.
• C) the current yield plus the rate of capital gains.
• D) the coupon rate multiplied by the rate of capital gains.

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Definitions:

Resource Demand Schedule

A table or graph that shows the quantity of a resource demanded at various price levels, illustrating how demand changes with price.

Purely Competitive Market

A market structure characterized by many buyers and sellers, where no single entity has enough power to influence the market price of goods or services.

MP

Marginal Product, which refers to the additional output resulting from using one more unit of a productive input, holding all other inputs constant.

Wage Rate

The fixed amount of compensation paid to an employee by an employer in return for work performed, often expressed per hour, day, or piece.