In order to keep the total return of a stock equal to 100 percent, the income component for that stock must be zero.

Question

Quizplus · Accepted Answer

This statement is false. The total return of a stock includes both capital appreciation (the increase in the stock's value) and income (such as dividends paid out by the company). Therefore, a stock can have a total return of 100 percent while still having an income component.

In Order to Keep the Total Return of a Stock