Which one of following is the rate at which a stock's price is expected to appreciate?

A) current yield

B) capital gains yield

C) dividend yield

D) coupon rate

E) total return


Answer :

Capital gains yield is the rate at which a stock's price is expected to appreciate.

What is capital gains yield?

The increase in a security's price, such as that of the common stock, is referred to as a capital gains yield. The CGY for common stock holdings is calculated by dividing the increase in stock price by the original cost of the investment. There is no capital gains yield if the value of an investment decreases below its original cost.

This idea just takes into account changes in an investment's price and excludes any dividend payments. The price increase of a security, such as common stock, over a specific time period is referred to as a capital gains yield. It doesn't include any dividends, and the yield is solely determined by changes in stock price.

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