Q115
If the Dow Jones Industrials had a price appreciation of 6 percent one year and yet Total return for the year was 11 percent; the difference would be due to___________.
A.
the tax treatment of capital gains
B.
the cumulative wealth effect
C.
dividends
AnswerD.
profits
Answer: Option C
Solution
Answer: Option C
Solution:
If the Dow Jones Industrials had a price appreciation of 6 percent one year and yet Total return for the year was 11 percent; the difference would be due to dividends. A dividend is the distribution of reward from a portion of the company's earnings and is paid to a class of its shareholders.