The rate of return of a stock held for one year equals

Question

Quizplus · Accepted Answer

The rate of return of a stock held for one year is calculated by adding the dividend yield to the rate of capital gain. The change in the price of the stock only indicates the capital gain, but does not take into account the dividend payments. The dividend yield minus the rate of capital gain or the rate of capital gain minus the dividend yield would result in an incorrect calculation of the rate of return.

The Rate of Return of a Stock Held for One