If the Dow Jones Industrials Had a Price Appreciation of 6

question 51

Multiple Choice

If the Dow Jones Industrials had a price appreciation of 6 percent one year and yet total return for the year was 9 percent,the difference would be due to:

• A)the tax treatment of capital gains.
• B)the cumulative wealth effect.
• C)dividends.
• D)profits.

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Definitions:

Memoranda

Brief, informal written records used to aid memory or inform others within an organization.

Deposits In Transit

Funds that have been sent to a bank but have not yet been recorded in the bank's records, leading to a discrepancy between the company’s cash records and bank statement.

Outstanding Checks

Checks recorded in the issuer's financial records that haven't been processed or cashed by the banking institution yet.

Bank Statement

A record provided by a bank that summarizes all transactions in an account for a specific period of time, showing all deposits, withdrawals, and current balance.