Which One of the Following Statements Related to Capital Gains

question 36

Multiple Choice

Which one of the following statements related to capital gains is correct?

• A)The capital gains yield includes only realized capital gains.
• B)An increase in an unrealized capital gain will increase the capital gains yield.
• C)The capital gains yield must be either positive or equal to zero.
• D)The capital gains yield is expressed as a percentage of the sales price.
• E)The capital gains yield represents the total return earned by an investor.

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Definitions:

Follower Strategy

A market approach where a company chooses to enter a market by following in the footsteps of pioneers, often adapting and improving existing products or services.

Existing Product

A product that is already available in the market, as opposed to a new or forthcoming product.

Improved Version

An updated iteration of a product that is enhanced to offer better performance, additional features, or other improvements over the original.