History quiz

What are the two parts of total return?

1. Capital appreciation: This refers to the increase in the value of an asset over time. For example, if you buy a stock for $100 and it rises to $150, you have achieved a capital appreciation of $50.

2. Income: This refers to any payments you receive from an asset, such as interest from a bond or dividends from a stock. For example, if you buy a bond that pays 5% interest, you will receive $5 for every $100 you invest each year.