Chapter 12 - Returns

Question 1

Return components

Answer 1

return includes dividends and capital gains

Question 2

Does return depend on initial investment

Answer 2

NO

Question 3

nominal

Answer 3

no inflation

Question 4

real

Answer 4

includes inflation

Question 5

efficient market hypothesis

Answer 5

all capital markets are efficient, so NPV = 0 because you get what you pay for