An asset's total expected return over the next year is given by:

rtotal=c1+p1p0p0rtotal=c1+p1p0p0

Where p0p0 is the current price, c1c1 is the expected income in one year and p1p1 is the expected price in one year. The total return can be split into the income return and the capital return.

Which of the following is the expected capital return?

(a) c1c1

(b) p1p0p1p0

(c) c1p0c1p0

(d) p1p01p1p01

(e) p1p0