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What Two Elements Are Represented in Security Returns

question 13

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What two elements are represented in security returns?


Definitions:

Market Price

The market's ongoing price for the transaction of assets or services.

Basis Point

A unit of measure used in finance to describe the percentage change in value or rate of a financial instrument, equal to 1/100th of 1%.

Coupon Rate

The percentage of face value paid as interest on a bond each year.

Current Yield

The interest or dividend income an investment generates, expressed as a percentage of the investment's current market price.

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