Asked by Karina Goldberg on Jul 25, 2024
Verified
The rate at which the stock price is expected to appreciate (or depreciate) is the:
A) Current yield.
B) Total yield.
C) Dividend yield.
D) Capital gains yield.
E) Earnings yield.
Appreciate
An increase in the value of an asset over time.
Capital Gains Yield
The rise in price of an investment or asset, expressed as a percentage of the investment's purchase price.
Stock Price
The current market value of a share of a company's stock, determined by supply and demand dynamics in the stock market.
- Identify the factors affecting stock prices, including market rate of return and dividend growth rate.
Verified Answer
RJ
ruixin jiangJul 27, 2024
Final Answer :
D
Explanation :
The capital gains yield represents the rate at which the stock price is expected to appreciate (or depreciate). It focuses on the price change of the stock, not the income it may generate through dividends.
Learning Objectives
- Identify the factors affecting stock prices, including market rate of return and dividend growth rate.