The dividend yield on a stock will be ___________, while the capital gains yield will be ___________.
A) Positive; either positive or zero
B) Positive; positive
C) Positive; negative, positive or zero
D) Positive or zero; positive or zero
E) Positive or zero; negative, positive or zero

Question

Quizplus · Accepted Answer

Dividend yield is the ratio of annual dividend per share to the stock price, and it can be positive or zero. Capital gains yield is the percentage change in the stock price over a given period, and it can be negative, positive, or zero. Therefore, E is the best choice because it allows for the possibility of zero dividend yield and negative capital gains yield.

The Dividend Yield on a Stock Will Be ___________, While