Alpha Industries stock sold for $39 a share at the beginning of the year.During the year,the company paid a dividend of $3 a share and then ended the year with a stock price of $37.The change in the stock price is best described as a:
A)capital gain.
B)positive total dollar return.
C)capital loss.
D)negative total dollar return.
E)negative dividend yield.

Question

Quizplus · Accepted Answer

The stock price decreased from $39 to $37, resulting in a decrease in value for the investor, which is described as a capital loss. The dividend payment of $3 per share is not relevant to the change in the stock price. Therefore, choices A, B, D, and E are incorrect.

Alpha Industries Stock Sold for $39 a Share at the Beginning