Question
please answer asap An investor bought a stock for $ 13 (at t=0) and one year later it paid a $ 0 dividend (at t=1).
please answer asap
An investor bought a stock for $13 (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 8% pa, given as an effective annual rate. Which of the following statements is NOT correct? All answer options are rounded to 6 decimal places. The stock investment produced a:
Question 8Select one:
a.
Nominal capital return of 35.327636% pa.
b.
Nominal total return of 46.153846% pa.
c.
Real capital return of 35.327636% pa.
d.
Real income return of 0% pa.
e.
Real total return of 35.327636% pa.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started