(7.1) The return on an investment comes in two forms: the and the two forms: component gain or loss. The return on investment in common stock comes in gains (or losses). and gains (or losses) for an investment in common stock arise from in the value of the investment. (7.2) The total percentage return for an investment in common stock is the sum of the yield and the gains yield. The dividend yield is defined algebraically as

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question 77
For the following, fill in the blanks with the appropriate term(s). For questions that give you two
or three choices to choose from, circle the most appropriate.
(7.1) The return on an investment comes in two forms: the
and the
two forms:
component
gain or loss. The return on investment in common stock comes in
gains (or losses)..
and
gains (or losses) for an investment in common stock arise from
in the value of the investment.
(7.2) The total percentage return for an investment in common stock is the sum of the
yield and the
[(Pt+1-P)/ Pt]
The
gains yield. The dividend yield is defined algebraically as
gains yield is defined algebraically as
(7.3) The debt represented by T-bills is virtually free of any
life. We will call the rate of return on such debt the
over its short
and we will use it as
a kind of benchmark. The difference between the rate of return for a risky investment and the
return on T-bills is the
for the risky asset.
som levo
(7.4) An investor's portfolio is a
of a portfolio's total value invested in a particular asset is the
held by an investor. The percentage
(Jom 2121) 1251
tomed ad
sdi
(7.5) The variance and standard deviation of a portfolio (are / are not) equal to weighted averages
of the corresponding characteristics of the individual securities. For most portfolios, the standard
deviation is generally (greater than / less than / equal to) the weighted average of the standard
deviations of the securities in the portfolio.
Transcribed Image Text:Question 77 For the following, fill in the blanks with the appropriate term(s). For questions that give you two or three choices to choose from, circle the most appropriate. (7.1) The return on an investment comes in two forms: the and the two forms: component gain or loss. The return on investment in common stock comes in gains (or losses).. and gains (or losses) for an investment in common stock arise from in the value of the investment. (7.2) The total percentage return for an investment in common stock is the sum of the yield and the [(Pt+1-P)/ Pt] The gains yield. The dividend yield is defined algebraically as gains yield is defined algebraically as (7.3) The debt represented by T-bills is virtually free of any life. We will call the rate of return on such debt the over its short and we will use it as a kind of benchmark. The difference between the rate of return for a risky investment and the return on T-bills is the for the risky asset. som levo (7.4) An investor's portfolio is a of a portfolio's total value invested in a particular asset is the held by an investor. The percentage (Jom 2121) 1251 tomed ad sdi (7.5) The variance and standard deviation of a portfolio (are / are not) equal to weighted averages of the corresponding characteristics of the individual securities. For most portfolios, the standard deviation is generally (greater than / less than / equal to) the weighted average of the standard deviations of the securities in the portfolio.
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