Which one of the following values cannot be negative? A)Capital gain,P_{t + 1} - P_t B)Total dollar return C)Holding period return D)Dividend yield E)Total return,R_{t + 1}

Question

Quizplus · Accepted Answer

Dividend yield cannot be negative as it is a ratio of the dividend paid by the stock to its current market price. Since both dividend and stock price are positive, the ratio (dividend yield) cannot be negative.

Which One of the Following Values Cannot Be Negative