Asked by Ronald Bourdeau on Jun 05, 2024
Verified
Is it possible for the capital gain yield to exceed 100%? Explain or give an example.
Capital Gain Yield
The appreciation in the price of an investment, expressed as a percentage of the initial investment cost.
- Familiarize oneself with the principle of total return on investments, incorporating both income and capital gains yields.
Verified Answer
FL
Francisco LópezJun 11, 2024
Final Answer :
True
Explanation :
If the value of an investment more than doubles during the holding period, the capital gain is more than 100%.
Learning Objectives
- Familiarize oneself with the principle of total return on investments, incorporating both income and capital gains yields.