The annual rate of return on any given stock can be found as the stock's dividend for the year plus the change in the stock's price during the year, divided by its beginning-of-year price.

Question

Business

Kale Gonzalez

13 October, 19:02

The annual rate of return on any given stock can be found as the stock's dividend for the year plus the change in the stock's price during the year, divided by its beginning-of-year price.

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Sidney Gilmore · Answer 1

The statement is: True.

Explanation:

The Annual Rate Return is the return an investment provides over a period of time, shown as a time-weighted annual percentage. Those returns can include dividends, returns of capital, and capital appreciation. The Annual Rate of Return is measured against the initial amount of the investment. It is calculated with the following formula:

Annual Rate of Return = (EYP - BYP) / BYP X 100%

Where:

EYP = end of year price BYP = beginning of year price