Which of the following statements is FALSE?
A)The expected return is the return that actually occurs over a particular time period.
B)If you hold the stock beyond the date of the first dividend,then to compute your return you must specify how you invest any dividends you receive in the interim.
C)The average annual return of an investment during some historical period is simply the average of the realized returns for each year.
D)The realized return is the total return we earn from dividends and capital gains,expressed as a percentage of the initial stock price.

Question

Quizplus · Accepted Answer

The expected return is the return that is anticipated or predicted over a particular time period, while the realized return is the return that actually occurs.

Which of the Following Statements Is FALSE