Question

The current yield on a bond is similar to the __________ on a stock in that both ignore prospective capital gains and losses. ROA price/earnings ratio dividend yield ROE

Answer 1

Return on investment( ROI)

Explanation:

Return on investment only considers net profit and the cost of investment rather than the return on assets or return on equity so the current yield on a stock also focuses on the yield to maturity of the stock and the face value of the stock rather than comparing it with other stocks that are similar or the companies return on their assets that operate for that stock.