For proper comparisons among investments, the best measure of return is _________ return.
A) Dollar
B) Percentage
C) capital gains
D) Dividend
E) Stock

Question

Quizplus · Accepted Answer

Percentage return is the best measure of return because it allows for easy comparison among investments regardless of their initial value or size. Dollar return may be misleading if the initial amounts invested are significantly different. Capital gains and dividends are components of total return but do not provide a comprehensive picture. Stock is not a measure of return.

For Proper Comparisons Among Investments, the Best Measure of Return