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Need help with this question. Thank you An investor bought a stock for $16 (at t=0 ) and one year later it paid a $1
Need help with this question. Thank you
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 $21 (at t=1 ). Inflation over the past year (from t=0 to t=1 ) was 4% pa (note the negative sign), given as an effective annual rate. Which of the following statements is Nor correct? All answer options are rounded to 6 decimal places. The stock investment produced a Select one a. Nominal capital return of 37.5% pa. b. Nominal total return of 37.5% pa c. Real capital return of 3671875% pa X d. Real income return of 6.510417% pa e. Real total tetum of 43229167%pa Step by Step Solution
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