What does a stock performance comparison graph typically include?

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A stock performance comparison graph typically includes both price change and total return data to provide a comprehensive view of how a stock has performed over time. The price change reflects the movement of the stock price itself, indicating how much the stock has appreciated or depreciated in value. Total return goes beyond just price changes, as it accounts for dividends or any distributions made to shareholders, offering a fuller picture of an investor's experience with the stock.

Incorporating both elements allows investors to analyze the overall profitability of an investment, considering both capital gains and income generated from dividends. This comprehensive approach is particularly valuable when comparing different stocks or assessing the performance of a stock against a benchmark index, as it accurately reflects the total value received by shareholders.

Others options do not encompass the full spectrum necessary for a thorough understanding of stock performance. For instance, market capitalization changes focus solely on the company's total market value, which does not directly address stock performance from an investor's standpoint. Total return data alone, while valuable, lacks the price change component that helps to gauge fluctuation and volatility. Meanwhile, future stock predictions are speculative and not part of historical performance measures, making them irrelevant in the context of comparing actual past performance.

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