The Ratio Which Would Be Most Helpful to an Investor

question 32

Multiple Choice

The ratio which would be most helpful to an investor who is investing in ordinary shares primarily for dividends rather than for appreciation in market price,is:

• A)Return on total assets
• B)Dividend yield
• C)Rate of return on ordinary equity
• D)Current ratio

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Definitions:

Standard Deviation

An indicator of how much the values in a dataset spread out or differ from each other.

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most occurrences take place in the middle of the range.

Probability

The measure or estimation of how likely it is that an event will occur, expressed as a number between 0 (impossible) and 1 (certain).

Median

A statistical measure that represents the middle value in a given set of data when it is arranged in numerical order.