The Dividend Yield Is Defined as the Annual Dividend Expressed

question 39

Multiple Choice

The dividend yield is defined as the annual dividend expressed as a percentage of the:

• A)average stock price.
• B)initial stock price.
• C)ending stock price.
• D)total annual return.
• E)capital gain.

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Definitions:

Asset Beta

A constant that measures the sensitivity of an asset’s return to market movements and, therefore, the asset’s nondiversifiable risk.

Market Movements

Market Movements refer to the changes and trends in market prices and volumes over time, influenced by various factors including economic indicators, investor sentiment, and external events.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from a central bank's discount window.

Nondiversifiable Risk

A type of risk that affects all investments across a market and cannot be mitigated through diversification.