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:

Purchase Agreement

A legal document between a buyer and seller outlining the terms and conditions of a transaction or sale of goods, property, or services.

Survey

A drawing of the boundaries of a property prepared by a professional surveyor.

Encumbrances

Legal claims or liabilities attached to property that can affect its use, value, or transferability, such as mortgages or liens.

Discharging

The act of releasing someone from an obligation, such as a debt, duty, or legal liability, often through the payment or fulfillment of what is owed.