Q243
The expected return on an investment in stock is___________.
A.
the expected dividend payments
B.
the anticipated capital gains
C.
the sum of expected dividends and capital gains
AnswerD.
less than the realized return
Answer: Option C
Solution
Answer: Option C
Solution:
The expected return on an investment in stock is the sum of expected dividends and capital gains. The expected return on an investment is the expected value of the probability distribution of possible returns it can provide to investors.