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The Return on a Stock Is Equal to Its Dividend

question 43

True/False

The return on a stock is equal to its dividend plus the change in stock price.


Definitions:

Red Herring

A prospectus for the sale of a security not yet approved by the SEC. Stamped with the word preliminary in red letters.

Commerce Department

A department of the federal government dedicated to promoting economic growth, supporting business, and managing trade.

Maturity Matching

A financial strategy that involves matching the duration of assets and liabilities to mitigate risk.

Financing

The act of supplying capital for enterprise operations, acquisitions, or investment purposes.

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