What Do You Call the Portion of Your Total Return

question 53

Multiple Choice

What do you call the portion of your total return on a stock investment that is caused by an increase in the value of the stock.

• A) Dividend yield.
• B) Risk-free return.
• C) Capital gain.
• D) None of the above.

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Definitions:

Utility

In economics, utility refers to the total satisfaction received from consuming a good or service.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning the consumer has no preference for one bundle over another.

Consumer Equilibrium

A state where an individual optimizes their utility or satisfaction from the consumption of goods and services given their income and prices.

Budget Constraint

The representation of all the combinations of goods and services that a consumer can afford to buy with their income at given prices.