The capital gains yield plus the dividend yield on a security is called the
A)geometric return.
B)total return.
C)average period return.
D)variance of returns.
E)current yield.

Question

Quizplus · Accepted Answer

The total return on a security is the sum of the capital gains yield and the dividend yield. Therefore, option B, total return, is the correct answer. Option A, geometric return, refers to the average annual return, which takes into account compounding. Option C, average period return, is a vague term and does not refer to a specific concept. Option D, variance of returns, measures the volatility of returns and is not related to the question. Option E, current yield, only refers to the dividend yield and not the capital gains yield.

The Capital Gains Yield Plus the Dividend Yield on a Security