What does total return on share of stock mean?

What does total return on share of stock mean?

The total return on a share of stock refers to the dividend yield less any commissions paid when the stock is purchased and sold. T/F A proxy is a document giving one party the authority to act for another party, including the power to vote shares of common stock.

What happens if two stocks have the same rate of return?

False, If two stocks are equally risky, they should have the same expected rate of return. Therefore, a higher dividend yield is associated with a lower expected capital gains yield. If two stocks are equally risky, the stock with the higher dividend yield is likely to have a higher capital gain.

Which is true about the value of a share of stock?

T/F: According to the basic stock valuation model, the value an investor assigns to a share of stock is dependent upon the length of time the investor plans to hold the stock. False

Is the expected return of stocks the same as that of bonds?

If the stock market is semistrong-form efficient, this means the expected return on stocks and bonds should be the same. If the stock market is semistrong-form efficient, this means that high beta stocks should have the same expected return as low beta stocks. Statements b and c are correct. None of the statements above is correct.

The total return on a share of stock refers to the dividend yield less any commissions paid when the stock is purchased and sold. T/F A proxy is a document giving one party the authority to act for another party, including the power to vote shares of common stock.

T/F: According to the basic stock valuation model, the value an investor assigns to a share of stock is dependent upon the length of time the investor plans to hold the stock. False

If the stock market is semistrong-form efficient, this means the expected return on stocks and bonds should be the same. If the stock market is semistrong-form efficient, this means that high beta stocks should have the same expected return as low beta stocks. Statements b and c are correct. None of the statements above is correct.

Why is statement a true in the stock market?

Statement a is true, because Stock A has a higher required return but the stocks have the same growth rate, so Stock A must have the higher dividend yield. Here are some calculations to demonstrate the point.