n NISM Certifications
XV NISM Series XV
Medium

Earnings for an investor from a business depend on which of these factors?

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Interest rate in the economy

  2. B

    Inflation in the economy

  3. C

    Market conditions

  4. Performance of the company

    Correct answer

Why this is the answer

While external factors influence returns, the primary determinant is the company’s operational and financial performance, which generates profits available for dividends, reinvestment, or capital appreciation.

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