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An investor purchased the Share of ABC Ltd. at a price of Rs 150 five years back. During this period the dividends declared by the
An investor purchased the Share of ABC Ltd. at a price of Rs 150 five years back. During this period the dividends declared by the company and its share prices (closing) have been as follows: Year Dividend per Share(in Rs)Share Prices (in Rs) 0 150 1 9.00 176 2. 12.00 193 3 13.50 218 4 15.00 299 5 18.00 376 Had the investor invested in a savings bank account scheme he would have earned a return of 5,5%. Was the shareholder compensated for the risk that he undertook by investing in stocks
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