Question
An investor bought a stock for $15 (at t=0) and one year later it paid a $0 dividend (at t=1). Just after the dividend was
An investor bought a stock for $15 (at t=0) and one year later it paid a $0 dividend (at t=1). Just after the dividend was paid, the stock price was $19 (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? The stock investment produced a: Select one: a. Nominal capital return of 26.666667% pa. b. Nominal total return of 26.666667% pa. c. Real capital return of 39.333334% pa. d. Real income return of 0% pa. e. Real total return of 15.151515% pa.
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