Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. You bought 100 shares of a companys stock at $30 each. After a year, you received a total of $600 in cash dividends, and

1. You bought 100 shares of a companys stock at $30 each. After a year, you received a total of $600 in cash dividends, and your stock was worth $3,900. What is your total rate of return? Group of answer choices

a. 40%

b. 30%

c. 35%

d. 50%

e. 45%

2. Which of the following statements is false regarding the U.S. capital market over the past 90 years?

Group of answer choices

a. In general, riskiest investment has been compensated by highest actual returns.

b. There was no clear relationship between risk and returns.

c. Stocks have been riskier investment than bonds.

d. U.S. T-bills have proved to be the safest investment.

e. Small company stocks had outperformed large company stocks over the long-run.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational Financial Management

Authors: R M Srivastava

1st Edition

8174466703, 9788174466709

More Books

Students also viewed these Finance questions

Question

What does RAMstand for, and what is its purpose?

Answered: 1 week ago