Question: In chapter 7, we saw that a stock's required return can also be decomposed into a price and an income component. Select the two options
In chapter 7, we saw that a stock's required return can also be decomposed into a "price" and an "income" component. Select the two options below that define each of those.
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a
The dividend yield is the return each year that an investor receives from buying the stock and receiving a dividend payment.
b
The current yield is the return each year that an investor receives from buying the stock and receiving a coupon payment.
c
The capital gains yield is the return an investor receives from buying the stock and selling at a higher price at any point in time.
d
The capital gains yield is the return each year that an investor receives from buying the stock at the beginning of the year and selling it at the end of the year.
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