Chapter 12.1, Problem 12.1ACQ

Summary Introduction

To discuss: The parts of total return.

Introduction:

Total return refers to the total income from an investment. The total income includes the periodic incomes and the increase or decrease in the value of an asset. The total return equation is as follows:

$\text{Total returns (In dollars)}=\text{Dividend income}+\text{Capital gain or capital loss}$