If the Dow Jones Industrials had a price appreciation of 6 percent one year and yet total return for the year was 9 percent,the difference would be due to:
A)the tax treatment of capital gains.
B)the cumulative wealth effect.
C)dividends.
D)profits.

Question

Quizplus · Accepted Answer

The difference in price appreciation and total return would be due to the dividends that the Dow Jones Industrials paid during the year. The total return includes both price appreciation and dividend payments, while price appreciation only reflects the change in stock prices.

If the Dow Jones Industrials Had a Price Appreciation of 6