Each Stock's Rate of Return in a Given Year Consists

question 3

True/False

Each stock's rate of return in a given year consists of a dividend yield (which might be zero)plus a capital gains yield (which could be positive,negative,or zero).Such returns are calculated for all the stocks in the S&P 500.
-A simple average of those returns (which gives equal weight to each company in the S&P 500)is then calculated.That average is called "the return on the S&P Index," and it is often used as an indicator of the "return on the market."

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Definitions:

Tax

A mandatory monetary fee or another form of charge levied on a taxpayer by a government body to finance government operations and various public expenses.

Elastic

Describes a situation in which the demand or supply of a good or service is highly sensitive to changes in price.

Radish Farmers

Individuals or businesses involved in the cultivation and sale of radishes, typically as part of the agricultural sector.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.