alleryStart learning →In investment terms, return is defined as the benefit or profit the investor:
AExpects from an expenditure
BPays to the stockbroker
COwes to the tax office
DLoses in a bad year
Answer & Solution
Correct answer: A. Expects from an expenditure
1. Return is defined from the investor's point of view.
2. The concept of return is described as fairly straightforward.
3. Return is the benefit, or profit, the investor expects.
4. That expectation is attached to an expenditure.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 15 'Risk, Return, and Capital Market Theory'_
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