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:

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit, determined by the point where marginal cost equals marginal revenue.

Purely Competitive Market

Describes a theoretical market structure featuring many buyers and sellers of a homogeneous good or service, with no single party able to manipulate prices due to the absence of market control.

Cost Data

Information about the expenses incurred in the production of goods or services.

Market Price

The price at which a good or service is offered in the marketplace.