9
lesson pretestMultiple Choice

Pretest

Question 9 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Capital appreciation refers to

Answer
A
the distribution of earnings to shareholders.
B
the increased value of an asset.
C
the ability to make a profit from owning stock.
D
the profitable sale of shares.

Explanation

Capital appreciation is an increase in the value of an asset over time. For example, if a stock rises in price from $20 to $25 per share, it has appreciated by $5 per share. This is different from distributing company earnings to shareholders, which is called a dividend.

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