An investor bought a stock for $17 (at t-0) and one year later it paid a $1 dividend (at t=1). Just after the dividend was paid, the stock price was inflation over the past year (from t-o to t=1) was 10% pa, given as an effective annual rate. Which of the following statements is NOT correct? options are rounded to 6 decimal places. The stock investment produced a: Select one: O a Nominal capital return of 35.294118 % pa. Ob. Nominal total return of 41.176471% pa. Oc Real capital return of 22.994652% pa. Od. Real income return of 7.23498 % pa.
An investor bought a stock for $17 (at t-0) and one year later it paid a $1 dividend (at t=1). Just after the dividend was paid, the stock price was inflation over the past year (from t-o to t=1) was 10% pa, given as an effective annual rate. Which of the following statements is NOT correct? options are rounded to 6 decimal places. The stock investment produced a: Select one: O a Nominal capital return of 35.294118 % pa. Ob. Nominal total return of 41.176471% pa. Oc Real capital return of 22.994652% pa. Od. Real income return of 7.23498 % pa.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:An investor bought a stock for $17 (at t=0) and one year later it paid a $1 dividend (at t-1). Just after the dividend was paid, the stock price was $23 (at t=1).
Inflation over the past year (from t=0 to t=1) was 10% pa, given as an effective annual rate. Which of the following statements is NOT correct? All answer
options are rounded to 6 decimal places. The stock investment produced a:
Select one:
O a. Nominal capital return of 35.294118 % pa.
O b. Nominal total return of 41.176471% pa.
OC Real capital return of 22.994652% pa.
Od. Real income return of 7.23498% pa.
Oe. Real total return of 28.342246% pa.
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