The total rate of return earned on a share is comprised of which two of the following?
I.Current yield
II.Yield to maturity
III.Dividend yield
IV.Capital gains yield
A)I and II only.
B)I and IV only.
C)II and III only.
D)II and IV only.
E)III and IV only.

Question

The total rate of return earned on a share is comprised of which two of the following? 
I.Current yield
II.Yield to maturity
III.Dividend yield
IV.Capital gains yield
A)I and II only.
B)I and IV only.
C)II and III only.
D)II and IV only.
E)III and IV only.

Quizplus · Accepted Answer

The total rate of return on a share is comprised of the dividend yield (the income received from dividends as a percentage of the stock's price) and the capital gains yield (the increase in the stock's price). Yield to maturity applies to bonds, not shares, and current yield is a term used in the context of bonds to describe the annual interest payment divided by the current market price.

The Total Rate of Return Earned on a Share Is