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With Regard to Shares as an Asset Class, Nominate the Correct

Question 2

Multiple Choice

With regard to shares as an asset class, nominate the correct statement below:


A) Shares are generally considered a relatively high-risk and high-return investment and are suit able for longer-term investors.
B) Shares have similar risks to listed property trusts.
C) By investing in companies providing unfranked dividends, Australian investors can derive tax-effective returns by means of the dividend imputation system under which, given companies have already paid tax at the company tax rate, investors can use franking credits to offset the amount of tax they pay on dividends.
D) Both a and b

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