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Questions and Answers
What does return on an investment typically include?
What does return on an investment typically include?
- Expenses related to the investment
- Insurance premiums
- Income received and change in market price (correct)
- Income tax deductions
How is risk defined in relation to investment returns?
How is risk defined in relation to investment returns?
- The total investment amount
- Variability of returns from those that are expected (correct)
- The income received from the investment
- The market price of the investment
How is return on investment usually expressed?
How is return on investment usually expressed?
- As a percentage of the expected returns
- As a percentage of the total market value
- As a percentage of the beginning market price (correct)
- As a fixed monetary value
