Expressing future return in the total return equation is usually done by estimating

Question

Quizplus · Accepted Answer

The expected annual growth in dividends or EPS is a common and reasonable way to estimate future return in the total return equation, as it takes into account the company's earnings potential and ability to distribute profits to shareholders. B and C are not reliable methods for estimating future return, as doubling or tripling the current yield is an arbitrary approach and overall economic growth may not directly correlate with the stock's performance. D refers to a stock's volatility in relation to the market, which is not directly related to future return.

Expressing Future Return in the Total Return Equation Is Usually