Question

Return on stock is measured as? A. annual dividends plus change in stock price..... divided by...

Return on stock is measured as?

A. annual dividends plus change in stock price..... divided by ending stock price

B. annual dividends plus change in share price..... divided by beginning stock price

C. quarterly dividends plus average price divided by beginning stock price

D. realized gain on stock divided by beginning stock price

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Answer #1

Answer : Correct Option is (B.) annual dividends plus change in share price..... divided by beginning stock price.

Reason :

Return on Stock = [Annual Dividend + (Closing Stock Price - beginning stock price.)] / beginning stock price

= [Annual Dividend + Change in Stock Price] / beginning stock price.

Therefore correct Option is (B.) annual dividends plus change in share price..... divided by beginning stock price.

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