Each stock's rate of return in a given year consists of a dividend yield (which might be zero)plus a capital gains yield (which could be positive,negative,or zero).Such returns are calculated for all the stocks in the S&P 500.
-A weighted average of those returns,using each stock's total market value,is then calculated,and that average return is often used as an indicator of the "return on the market."

Question

Quizplus · Accepted Answer

This statement accurately describes how the S&P 500 calculates its market return.

Each Stock's Rate of Return in a Given Year Consists