If the price of an asset has not increased or decreased since the original purchase of the asset, then the total return of the asset (if no dividends were paid during the period) is equal to the capital appreciation component return. True or false?

Question

Addisyn Ponce

Business

30 September, 06:54

If the price of an asset has not increased or decreased since the original purchase of the asset, then the total return of the asset (if no dividends were paid during the period) is equal to the capital appreciation component return. True or false?

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Answers (1)

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Rachael Downs · Answer 1

True

Explanation:

As the capital appreciation component return shows the difference between the purchase price of the asset and the selling price of the asset

So as per the given situation of the price of an asset has not increased or decreased so it would show the original price of the assets i. e to be equal to the capital appreciation

Hence, the given statement is true