For a stock that does not pay a dividend, the total return can also be deﬁned as the:
A) Risk premium plus the inﬂation rate.
B) Capital gains rate.
C) Real rate of return.
D) Financial rate of return.
E) Nominal after-tax rate of return.

Question

Quizplus · Accepted Answer

For a stock that does not pay a dividend, the total return is equal to the capital gains rate. This represents the increase in the value of the stock over time.

For a Stock That Does Not Pay a Dividend, the Total