In the Equation R = + U,the Three Symbols

question 3

Multiple Choice

In the equation R = + U,the three symbols stand for:

• A)average return,expected return,and unexpected return.
• B)required return,expected return,and unbiased return.
• C)actual total return,expected return,and unexpected return.
• D)required return,expected return,and unbiased risk.
• E)risk,expected return,and unsystematic risk.

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Definitions:

Net Income

The amount of money left after all expenses, taxes, and deductions have been subtracted from a company's total revenue.

Separately Stated Items

Items on a partnership or S corporation tax return that are passed through to the owners or shareholders separately from ordinary income.

Schedule K-1

A financial form that details the earnings, deficits, and dividend distributions for partners or shareholders of a partnership or S corporation.

Partnership Income

The share of profits or losses from a partnership that is reported on the personal income tax returns of the partners, influenced by the terms of the partnership agreement.