The total realised return earned from a stock investment comprises two components: dividend yield and capital gains yield.

Question

Quizplus · Accepted Answer

The total realised return earned from a stock investment is indeed made up of two components, namely the dividend yield and the capital gains yield. The dividend yield is the return earned from dividends paid by the stock, while the capital gains yield is the return earned from the change in the stock's price over a period of time.

The Total Realised Return Earned from a Stock Investment Comprises