The Expected Return on a Common Stock Is Composed Of

question 86

Multiple Choice

The expected return on a common stock is composed of:

• A)Dividend yield
• B)Capital appreciation
• C)Both dividend yield and capital appreciation
• D)Capital appreciation minus the dividend yield

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Definitions:

Discount Date

The date on which a bill or note is paid before its maturity, resulting in a deduction from the nominal amount, known as a discount.

Complement Rate

In insurance, it refers to the percentage of coverage that an insurance company does not cover under a coinsurance clause; effectively, it is the portion of the cost that the policyholder must pay after insurance.

Discount Date

The deadline by which a payment must be made to avail of a cash discount for early payment.

Due Date

The specific day by which a payment, project, or assignment is required to be completed or submitted.