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."a. True

b. False

Question

Cheyanne Salazar

Business

8 August, 07:52

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."a. True

b. False

+1

Answers (1)

Know the Answer?

Rodney Waters · Answer 1

The correct answer is True.

Explanation:

The stock rate of return is a measure of the profitability of the shares over a period of time. There are a number of measures of performance of the shares, which include their own characteristics and benefits during a profitability analysis. The period during which stock returns are measured is chosen based on personal preferences, but portfolio managers usually measure it on a daily, weekly, monthly and annual basis.