3. Capital gains and losses An investment\'s capital gain or loss is an importan

Question

3. Capital gains and losses An investment's capital gain or loss is an important component of its yield. Read each statement about capital gains and indicate whether it is true or false Statement True False A capital gain increases an investor's yield. A capital gain results when the security's ending (sale) price is less than the beginning (purchase) price. A capital gain is calculated as an asset's beginning (purchase) price minus its ending (sale) price. A bond that was purchased tour years ago for $950 and sold yesterday for $1,125 is realizing a capital gain of $175.

Explanation / Answer

False

True

False

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