Multiple choice

The Income Ratio is more suitable for evaluating the performance of

  1. equity funds

  2. growth funds

  3. regular income funds

  4. index funds

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Income Ratio measures yield from interest and dividends, making it most relevant for regular income funds that prioritize steady payouts. Equity funds focus on capital appreciation, growth funds aim for long-term gains, and index funds track market performance; none of these objectives center on yield measurement.