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  1. Topics
  2. Business
  3. Investments Study Set 3
  4. Quiz 5: Risk, Return, and the Historical Record

You Purchased a Share of Stock for $20

Question 7
Multiple Choice

You purchased a share of stock for $20. One year later, you received $1 as a dividend and sold the share for $29. What was your holding-period return? A) 45% B) 50% C) 5% D) 40% E) None of the options are correct.

Related questions
Q 8
You purchased a share of stock for $68. One year later, you received $3.00 as a dividend and sold the share for $74.50. What was your holding-period return? A) 12.5% B) 14.0% C) 13.6% D) 11.8%
Q 9
Which of the following determine(s) the level of real interest rates? I) The supply of savings by households and business firms II) The demand for investment funds III) The government's net supply and/or demand for funds A) I only B) II only C) I and II only D) I, II, and III
Q 10
Which of the following statement(s) is(are) true? I) The real rate of interest is determined by the supply and demand for funds. II) The real rate of interest is determined by the expected rate of inflation. III) The real rate of interest can be affected by actions of the Fed. IV) The real rate of interest is equal to the nominal interest rate plus the expected rate of inflation. A) I and II only B) I and III only C) III and IV only D) II and III only E) I, II, III, and IV only
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