economy






 

Question by  cary (111)

What is the difference between total return and capital appreciation?

 
+7

Answer by  Lisa92 (49)

For example, when you buy shares of stock at 1. 00 each and then sell them for 1. 10 you have had capital appreciation of 10 cents or 10 percent. But if during that time the stock also paid a dividend of 1 cent, then the total is 11 percent.

 
+6

Answer by  BL (15)

Capital appreciation is the increase in the amount of value of a given asset from its cost basis, while total return is the actual amount of gains made with a given asset or asset group through capital appreciation as well as its income producing mechanisms over a specific time period.

 
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