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Management · Q87

Financial Management

Graduate and Post Graduate · Management · question 87

Q87

The return component that gives periodic cash flows to the investor is known as the______________.

A.
capital gain
B.
interest rate
C.
yield
Answer
D.
unrealized gain.

Answer: Option C

Solution

Answer: Option C
Solution:
The return component that gives periodic cash flows to the investor is known as the yield. Yield is the periodic cash flow (or return on investment in the form of interest or dividends).