A) the expected dividend payments
B) the anticipated capital gains
C) the sum of expected dividends and capital gains
D) less than the realized return
✅ ANSWER: C
The expected return on an investment in stock is the sum of expected dividends and capital gains. The expected return on an investment is the expected value of the probability distribution of possible returns it can provide to investors.
The expected return on an investment in stock is the sum of expected dividends and capital gains. The expected return on an investment is the expected value of the probability distribution of possible returns it can provide to investors.