Which of the Following Is Not Included in Gross Income

question 119

Multiple Choice

Which of the following is not included in gross income when received?

• A)interest received on bank accounts
• B)royalties paid to an author
• C)amounts received to cancel or modify a lease
• D)refundable security deposit

---

Definitions:

Capital Asset Pricing Model (CAPM)

Equation of the Security Market Line showing the relationship between expected return and beta.

Reward To Risk Ratio

A measure that evaluates the anticipated gains from an investment against the level of risk assumed to achieve these gains.

Security Market Line

A graphical representation of the expected return of all risky marketable securities as a function of their beta, or systemic risk, according to the capital asset pricing model.

Diversifiable Risk

Relates to the risk that can be reduced or eliminated from a portfolio by holding a variety of investments.