The Expected Return on a Common Stock Is Composed Of

question 69

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:

Schedule D

Utilized by taxpayers to report sales or exchanges of capital assets, encapsulating both gains and losses.

Form 4797

A tax form used to report the sale or exchange of business property, encompassing both gains and losses.

Investment Purposes

The intent to allocate resources or capital towards assets anticipated to generate income or profit.

Inheritance

Assets received from someone who has passed away, often subject to specific laws and taxes.