The Total Dollar Return on an Equity Investment Is Defined

question 20

Multiple Choice

The total dollar return on an equity investment is defined as:

• A) All cash flows and gains from an investment, excluding any losses.
• B) All cash inflows such as dividends and capital gains or losses.
• C) The increase in the price of an asset.
• D) Capital gains received.
• E) Only the capital gains received, not including capital gains not realized.

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Definitions:

Capital Stock

The total value of all durable goods available for use in production, including machinery, buildings, and equipment.

Increase

A situation where there is a rise in quantity, size, number, value, or intensity of a particular economic variable or element.

Sub-Prime Loan

A type of loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans, usually because of poor credit histories.

Prime Rate

Rate of interest that banks charge their most creditworthy customers.