A stock’s capital gains yield will never be negative.
True
False
Classify this news event as Systematic or Unsystematic and indicate whether prices will increase or decrease.
Home Depot's sales soared in the first quarter, despite an increase in costs due to the coronavirus.
Systematic, Increase
Systematic, Decrease
Unsystematic, Increase
Unsystematic, Decrease
ans False | ||||
When the stock prices are lower than the price at which you bought the stock it will create negative capital gain yield on the stock. Hence a capiatl gain yield can be negative, positive | ||||
we can calculte capital gain yield = Current price-Purchase price/Purchase price | ||||
ans 2 | ||||
Unsystematic, Decrease | ||||
First it is specific to industry hence unsystematic than as the sales increased | ||||
despite the cost incraesed so the price will increase as the profits jumped | ||||
If any doubt plese comment |
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