Question

A stock’s capital gains yield will never be negative. True False Classify this news event as...

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

Homework Answers

Answer #1
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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