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n 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 $7 (at t=1). Inflation over the past year (from t=0 to t=1) was -6% pa (note the negative sign), 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 2Select one: a. Nominal capital return of -46.666667% pa. b. Nominal total return of -46.666667% pa. c. Real capital return of -50.35461% pa. d. Real income return of 7.092199% p

n 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 $7 (at t=1). Inflation over the past year (from t=0 to t=1) was -6% pa (note the negative sign), 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 2Select one: a. Nominal capital return of -46.666667% pa. b. Nominal total return of -46.666667% pa. c. Real capital return of -50.35461% pa. d. Real income return of 7.092199% p

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter7: Stocks (equity) - Characterstics And Valuation
Section: Chapter Questions
Problem 14PROB
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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 $7 (at t=1). Inflation over the past year (from t=0 to t=1) was -6% pa (note the negative sign), 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 2Select one:

a.

Nominal capital return of -46.666667% pa.

b.

Nominal total return of -46.666667% pa.

c.

Real capital return of -50.35461% pa.

d.

Real income return of 7.092199% pa.

e.

Real total return of -43.262411% pa. 

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