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4. Which of the following statements regarding dollar returns and percentage returns is incorrect ? If you purchased a 6% bond at par ($1,000) and
4. Which of the following statements regarding dollar returns and percentage returns is incorrect?
If you purchased a 6% bond at par ($1,000) and one year later sold it for
$1,050 after receiving the coupons, your dollar return is $80.
B) Your percentage return in A) is 11%.
C) If you purchased a stock for $50 and one year later sold it for $55 after
receiving $5 of dividends, your dollar return is $10.
D) Your percentage return in C) is 20%.
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