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

question 16

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 is then calculated, and 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:

Federal Government

The central government of a federation, which holds the authoritative powers that are delegated to it by the constitution and is typically divided into executive, legislative, and judicial branches.

Twenty-First Amendment

This amendment to the United States Constitution effectively ended Prohibition by repealing the Eighteenth Amendment, allowing for the sale, manufacture, and transportation of alcohol.

Prohibition

A period in the early 20th century when the sale, manufacture, and transportation of alcoholic beverages were banned in the United States by the 18th Amendment.

Literacy Requirements

Conditions or standards related to the ability to read and write, often set as criteria for accessing certain rights, positions, or opportunities.