Question
1. One year ago, you purchased a stock at a price of $43.20 per share. The stock pays quarterly dividends of $.18 per share. Today,
1. One year ago, you purchased a stock at a price of $43.20 per share. The stock pays quarterly dividends of $.18 per share. Today, the stock is selling for $45.36 per share. What is total percent return on the investment
A) 5%
B) 1.42%
C) 5.42%
D)5.16%
E)6.67%
2. Ford announces recalling 620,246 U.S.-market vehicles to fix a problem with a rearview camera that may leave a blank or distorted screen. What will happen to the stock price of Ford if markets are semi strong efficient:
A) The stock price will gradually decrease over a period of time.
B) The stock price will not be affected and remain the same as Ford is taking positive action
C) The stock price will immediately reduce to a value that would factor in this information.
D) The stock price will start going up in the long run since the problem will be solved
E) The stock price will change only if insiders start trading
3. Calculate the geometric return for the following returns on Crash-n-Burn Computer's stock over the past five years: 7 percent, 13 percent, 19 percent, 8 percent, and 15 percent:
A) 9.2%
B) 2.9%
C) 12.4%
D) 8.23
E) 8.77%
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