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The Expected Return on a Common Stock Is Equal To

Question 68

Multiple Choice

The expected return on a common stock is equal to:


A) [(1 + dividend yield) × (1 + capital appreciation rate) ] − 1.
B) the capital appreciation rate + dividend yield.
C) (1 + capital appreciation rate) /(1 + dividend yield) .
D) the capital appreciation rate − dividend yield.

Correct Answer:

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