323.1
1. What are the two ways an asset can generate a rate of return?
The rate of return your earn from an asset comes from income generated from holding the asset (such as coupon payments on a bond) and capital gain (or loss) from selling the asset. If you sell the asset for more than you paid then part of your return comes from a capital gain. If you sell it for less than you paid, the part of your return comes from a capital loss.