The capital gains yield (yield from growth) plus the dividend yield (yield from income) on a...

The capital gains yield (yield from growth) plus the dividend yield (yield from income) on a security is called the:

A. total return.
B. geometric return
C. average period return.
D. current yield.
E. variance of returns
.

Expert Solution

The answer is option A) Total return

The formula for total return is

(P1 - P0) + D

where

P1 = Initial stock price

P0 = Ending stock price

D = Dividends yields

(P1 - P0) = Capital gain yields

jeff jeffy answered 2 years ago

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