Question
Question text An investor bought a stock for $ 15 (at t=0) and one year later it paid a $ 1 dividend (at t=1). Just
Question text
An investor bought a stock for $15 (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 $13 (at t=1). Inflation over the past year (from t=0 to t=1) was 6% 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 9Select one:
a.
Nominal capital return of -13.333333% pa.
b.
Nominal total return of -6.666667% pa.
c.
Real capital return of -8.133333% pa.
d.
Real income return of 6.289308% pa.
e.
Real total return of -11.949685% pa.
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