Which of the Following Statements Is FALSE

question 91

Multiple Choice

Which of the following statements is FALSE?

• A) The expected return is the return is the return that actually occurs over a particular time period.
• B) If you hold the stock beyond the date of the first dividend, then to compute you return you must specify how you invest any dividends you receive in the interim.
• C) The average annual return of an investment during some historical period is simply the average of the realized returns for each year.
• D) The realized return is the total return we earn from dividends and capital gains, expressed as a percentage of the initial stock price.

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Definitions:

Cash Receipts

The total amount of cash collected by a business during a specific period, including revenues and other income.