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The Total Return on a Share of Stock Refers to the Dividend

question 48

True/False

The total return on a share of stock refers to the dividend yield less any commissions paid when the stock is purchased and sold.

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Definitions:

Interest Rate

The charge for borrowing money or the return for investing money, often expressed as a percentage of the amount lent, borrowed, or invested.

Time-value

The concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

Real Capital

Physical assets like machinery, buildings, and infrastructure that are used in the production of goods and services.

Equilibrium Interest Rate

The interest rate at which the demand for money balances exactly equals the supply of money in circulation, leading to economic equilibrium.

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