Which of the following statements is correct in relation to a stock investment?
I.The capital gains yield can be positive,negative,or zero.
II.The dividend yield can be positive,negative,or zero.
III.The total return can be positive,negative,or zero.
IV.Neither the dividend yield nor the total return can be negative.

Question

Quizplus · Accepted Answer

I is correct since capital gains yield can be positive or negative depending on the stock price movement, or zero if there is no change in stock price. 
II is incorrect since the dividend yield cannot be negative but can be zero if the company does not pay any dividends. 
III is correct since the total return can be positive or negative depending on the changes in stock price and dividend payments, or zero if there is no change in stock price and no dividend payments. 
IV is incorrect since both the dividend yield and the total return can be negative if the company's stock price declines and/or the company reduces or eliminates dividends.

Which of the Following Statements Is Correct in Relation to a Stock