Capital gains and dividends are considered as components of

A. return

B. equity

C. spot rate contracts

D. forward rate contracts

Answer: Option A

Solution(By Examveda Team)

Capital gains and dividends are considered as components of return. Capital gains are profits that occur when an investment is sold at a higher price than the original purchase price. Dividends are assets that are paid out of the profits of a corporation to the stockholders.