The capital appreciation component of a stock's return considers the increase in price of a stock divided by the beginning of period price of the stock.

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The capital appreciation component of a stock's return is calculated as the increase in stock price divided by the beginning stock price of the period. This measures the gain in the stock's value over time, and is a key factor in assessing the performance of a stock investment.

The Capital Appreciation Component of a Stock's Return Considers the Increase