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Net investment income is always less than gross investment income. Question 4 options: 1) True 2)...

Net investment income is always less than gross investment income. Question 4 options: 1) True 2) False

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Answer #1

The given statement is True.

Supporting explanations:

The Net Investment Income is the result after deducting the related expenses of the investment from the Gross Investment. When the related expenses like brokerage charges on the investment etc. are deducted from the Gross Investment, it gets decreases and such balance amount of investment is called the Net Investment.

For more clarity, it is shown below -

Gross Investment Income = XXXX

Less: Related Expenses = XXXX

Net Investment Income = XXXX

Therefore, always the net investment income is less than the gross investment income due to related expenses, hence, the given statement is True.

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