Which One of the Following Statements Is Correct Concerning the Dividend

question 73

Multiple Choice

Which one of the following statements is correct concerning the dividend yield and the total return?

• A)The dividend yield can be zero while the total return must be a positive value.
• B)The total return can be negative but the dividend yield cannot be negative.
• C)The total return must be greater than the dividend yield.
• D)The total return plus the capital gains yield is equal to the dividend yield.
• E)The dividend yield exceeds the total return when a stock increases in value.

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Definitions:

Large Errors

Significant deviations between observed values and those predicted or expected, often indicating a model's lack of fit.

Autoregressive Model

A type of statistical model that predicts future values based on past values of the variable, often used in time series analysis.

First-order

Typically refers to the simplest form of a mathematical model or differential equation, indicating that it involves only the first derivatives or linear terms.

Stock Sales

The process or activity of selling shares of a company on the stock market.