Question

The total return on a share of stock refers to the dividend yield less any commissions paid when the stock is purchased and sold.

a. true
b. false

Answer 1

The correct answer is False.

In the given sentence, The total return on a share of stock refers to the dividend yield fewer commissions paid when the stock is purchased and sold is false.

The true statement is:

The total stock return equals the dividend yield plus any stock price appreciation/depreciation.

• Share price appreciation is a term that is used in finance.
• This term refers to the increase in the price of a share of stock.

This is calculated using the return on investment formula:

Share price appreciation = (Current price - Initial price) / Initial price

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