Which of the following statements is incorrect?
A) Total Return = Income yield + capital gain (or loss) yield.
B) The trend over the past 30 years has been declining dividend yields.
C) Capital gain is the depreciation in the price of an asset from some starting point in time.
D) Dividend yield can change for two reasons - changes in the dividends per share or changes in the stock price.

Question

Quizplus · Accepted Answer

Capital gain refers to the increase in the price of an asset from some starting point in time, not the depreciation. Depreciation would be considered a capital loss.

Which of the Following Statements Is Incorrect