Question

The rate of return an investor expects to earn on a stock consists of the expected growth rate, or capital gains yield, that is associated with the stock and the _____ generated by the stock.

Answer 1

capital gains

Step-by-step explanation:

the rate of return for holding a stock will be determinate as follows:

`(dividneds + capital \: gain)/(purchase) = ROR`

Where:

Capital gain = selling price or market price less purchase price.

TheCapital gain represent the amount earned by the hold of the stock as a result of changes in the value in open market