Question

A _____ is the return on an asset that results when its market price rises above the price an investor paid for it.

Answer 1

A capital gain is the return on an asset that results when its market price rises above the price an investor paid for it. A capital gain is the profit that someone receives from the sale of a property or an investment. If you invest in an item and then sell it for more than what you paid for it originally, then you have a capital gain because you profited off the item.

Answer 2

The correct answer is Capital gain.

Step-by-step explanation:

A capital gain is the benefit obtained by the sale of various assets compared to the acquisition price of that asset. When the sale price exceeds the acquisition price there will be a capital gain; however, when the sale price is lower than the acquisition price there will be a loss of capital.