We define common stock returns--a common measure of performance--as the dividend paid per share of stock divided by the price of the stock at a given time.

Question

Quizplus · Accepted Answer

Common stock returns are typically defined as the sum of dividends received and the capital gain (or loss) from the change in stock price, divided by the initial stock price, not just the dividend divided by the stock price.

We Define Common Stock Returns--A Common Measure of Performance--As the Dividend