Which one of the following statements related to capital gains is correct?
A) The capital gains yield includes only realized capital gains.
B) An increase in an unrealized capital gain will increase the capital gains yield.
C) The capital gains yield must be either positive or zero.
D) The capital gains yield is expressed as a percentage of a security's total return.
E) The capital gains yield represents the total return earned by an investor.

Question

Quizplus · Accepted Answer

Capital gains yield refers to the change in the price of an investment, and it can include both realized and unrealized capital gains. An increase in the price of a security (unrealized capital gain) before it is sold does indeed increase the capital gains yield, as it reflects the appreciation in the value of the security over a period.

Which One of the Following Statements Related to Capital Gains