The Total Return on a Stock Is Equal to

question 36

Multiple Choice

The total return on a stock is equal to

• A)Annual dividend / Current stock price.
• B)Capital gains yield - Dividend yield.
• C)Capital gains yield + Dividend yield.
• D)(1 + Dividend yield)× (1 + Inflation rate)- 1.
• E)(1 + Capital gains yield)/ (1 + Dividend yield)- 1.

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Definitions:

Depositary Bank

A financial institution that holds and manages the deposits of securities for its clients and facilitates trading.

Payor Bank

A bank that is responsible for paying the checks or drafts of the person or entity that holds an account with them.

Drawn

Refers to the process of creating or producing something, usually in the context of drafting legal documents or pulling a negotiable instrument like a check.

Endorsement

The act of publicly supporting or approving something, or a legal amendment to a document or agreement, often seen in insurance policies or bank checks.