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Understanding Sources of Stock Returns

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Which of the following statements is/are true regarding the sources of stock returns? Select ALL that apply.

A

The fundamental return on a share of stock is the total of earnings growth and dividend yield.

B

Stockholders purchasing growth stocks will see the majority of their stock returns in capital gains, not dividends.

C

Stockholders purchasing mature stocks may see stock returns as a combination of capital gains and dividends, but the capital gains are likely comparatively smaller than capital gains from growth stocks.

D

Growth in stock prices also provides immediate capital gains disbursed in cash.