The return that an investor will realize by holding a financial asset depends on all the ________ that the financial asset will pay its owners; this includes dividends on shares and coupon payments on bonds.

Question

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Cash distributions refer to the payments made to the owners of the financial asset, which includes both dividends on shares and coupon payments on bonds. Stock distributions are not relevant here as they refer to the distribution of additional shares of stock, and not payments made to owners. Cash convertibility and liquid inventories are also not relevant to the return an investor will realize from a financial asset.

The Return That an Investor Will Realize by Holding a Financial