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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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