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Shay wanted to motivate her employees to perform at a higher rate. She has heard that you can pay employees for being more efficient. She begins to offer bonuses, yet she starts to see a decline in productivity and people living in fear of losing of their jobs. Why might that happen?
Total Return
Total return is the overall return on an investment, including dividends, capital gains, and interest, over a specific period.
Dividend Income
Income received from owning shares of a company, distributed out of the company's profits.
Capital Gain
The profit that results from a disposition of a capital asset, such as stock, bond, or real estate, where the sale price exceeds the purchase price.
Arithmetic Average Return
The simple mean of a series of returns over a period of time, calculated by summing the returns and dividing by the number of periods.
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