Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)Future dividend payments and stock prices are not known with certainty;rather these values are based on the investor's expectations at the time the stock is purchased.
• B)The capital gain is the difference between the expected sale price and the purchase price of the stock.
• C)The sum of the dividend yield and the capital gain rate is called the total return of the stock.
• D)We divide the capital gain by the expected future stock price to calculate the capital gain rate.

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Definitions:

Cognitive Processes

Mental activities involved in acquiring, processing, storing, and applying information, such as perception, memory, and reasoning.

Secondary Reinforcers

Stimuli that have no inherent value but become reinforcing through their association with primary reinforcers.

Operant Conditioning

An educational method where the intensity of a behavior is altered through reward or penalty.

Law Of Effect

Thorndike’s principle that behaviors followed by favorable consequences become more likely.