An investor bought a stock for $16 (at t=0) and one year later it paid a $1 dividend (at t=1). Just after the dividend was paid, the stock price was $5 (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 -68.75% pa.

b.

Nominal income return of 6.25% pa.

c.

Real capital return of -71.590909% pa.

d.

Real income return of 5.681818% pa.

e.

Real total return of -65.340909% pa.