Total return as defined in the text is:
A)the difference between the sale price and the purchase price of an investment.
B)measured by dividing the sum of all cash flows received by the amount invested.
C)the reciprocal of a return relative.
D)measured by dividing all cash flows received by its selling price.

Question

Quizplus · Accepted Answer

Total return is measured by dividing the sum of all cash flows received by the amount invested. Option A is actually capital gains, option C refers to inverse return, and option D divides cash flows by selling price, which is not an accurate measure of total return.

Total Return as Defined in the Text Is