Economics & AnalysisQuestion 11 of 110
Which measure best captures the total percentage gain from an investment, including both price change and reinvested income?
a.Total return
b.Current yield
c.Coupon rate
d.Nominal yield
Explanation
Total return combines price appreciation and income (such as dividends or interest), giving the complete measure of performance. Current yield reflects only annual income relative to price. Coupon rate and nominal yield reflect only a bond's stated interest, not price changes.
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