Which one of the following statements is correct concerning both the dollar return and the percentage...
Which one of the following statements is correct concerning both the dollar return and the percentage return on a stock investment? A) Without the size of an investment, the dollar return has less value than the percentage return. B) The dollar return is more accurate than the percentage return because the dollar return includes dividend income while the percentage return does not. C) The dollar return considers the time value of money while the percentage return does not. D) Dollar returns are based on capital gains while percentage returns are based on the total rate of return. E) Dollar returns must either be zero or a positive value while percentage returns can be negative, zero, or positive.
Homework Answers
Ans A) Without the size of an investment, the dollar return has less value than the percentage return
The dollar return is more accurate than the dollar return. The dollar return does not considers the time value of money while the percentage return does. Dollar returns are not based on capital gains while percentage returns are based on the total rate of return.
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