The Total Return on a Stock Is Equal to

question 3

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:

Manufactured

The process of converting raw materials into finished goods through the use of equipment, labor, and processes.

Business Trust

A business organization governed by a group of trustees who operate the trust for beneficiaries.

Trustees

Trustees are individuals or organizations appointed to manage assets on behalf of others, typically in a trust fund.

Beneficiaries

Beneficiaries are individuals or entities designated to receive benefits or assets under a legal instrument, such as a will, trust, or insurance policy.