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Basic Question 6 of 8

An investment's return on investment usually has two components, one of which is ______, which reflects the cash you receive directly while you own the investment.

A. the capital gain
B. the income component
C. your reward for bearing risk
D. your total dollar return
E. your gross return on that investment

User Contributed Comments 4

User Comment
soarer1 Current income = income component = rent
magicchip IE dividends, etc.
dipu617 What is the other component? Capital gain??
ybavly @dipu617
Total return = capital gains + income
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

describe risk and return objectives and how they maybe developed for a client

explain the difference between the willingness and the ability (capacity) to take risk in analyzing an investor's financial risk tolerance

CFA® 2025 Level I Curriculum, Volume 6, Module 4.