Question
Please answer within the hour true or false for all 14.)Each stock's rate of return in a given year consists of a dividend yield (which
Please answer within the hour
true or false for all
14.)Each stock's rate of return in a given year consists of a dividend yield (which might be zero) plus a capital gains yield (which could be positive, negative, or zero). Such returns are calculated for all the stocks in the S&P 500. A simple average of those returns (which gives equal weight to each company in the S&P 500) is then calculated. That average is called the return on the S&P Index, and it is often used as an indicator of the return on the market.
15.) Financial analysts treat depreciation as a cash expense.
16.)For a short-term U.S. T-bill, the price and yield are directly related due to there is no maturity risk premium. However, for long-term bonds, the price and yield are indirectly related, or if prices rise yields fall.
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