Which one of the following statements is correct concerning both the dollar retu

Question

Which one of the following statements is correct concerning both the dollar return and the percentage return on a stock investment? The dollar return is dependent on the size of the investment while the percentage return is not. The dollar return is more accurate than the percentage return because the dollar return includes dividend income while the percentage return does not. The dollar return considers the time value of money while the percentage return does not. Dollar returns are based on capital gains while percentage returns are based on the total rate of return. Dollar returns must either be zero or a positive value while percentage returns can be negative, zero, or positive.
Which one of the following statements is correct concerning both the dollar return and the percentage return on a stock investment? The dollar return is dependent on the size of the investment while the percentage return is not. The dollar return is more accurate than the percentage return because the dollar return includes dividend income while the percentage return does not. The dollar return considers the time value of money while the percentage return does not. Dollar returns are based on capital gains while percentage returns are based on the total rate of return. Dollar returns must either be zero or a positive value while percentage returns can be negative, zero, or positive.

Explanation / Answer

The dollar return considers the time value of money while the percentage return does not.

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