Asked by Clarise Gindap on Jun 19, 2024
Verified
An asset's return on investment has two components, one of which is ____________, which reflects the cash you receive directly while you own the investment.
A) the capital gain
B) the income component
C) your reward for bearing risk
D) your total dollar return
E) your gross return on that investment
Income Component
Income Component pertains to the portion of a financial product's return that is generated from the payment of interest or dividends.
Capital Gain
The profit earned from the sale of an asset like stocks, bonds, or real estate, which exceeds its purchase price.
- Identify the components of an asset's return on investment.
Verified Answer
SM
Sevin MaahesJun 21, 2024
Final Answer :
B
Explanation :
The income component of an asset's return on investment reflects the cash you receive directly while you own the investment, such as dividends on stocks or interest on bonds.
Learning Objectives
- Identify the components of an asset's return on investment.