Moshe purchased a stock for $30 last year. He found out today that he had a -100 percent return on his investment. Which of the following must be true?
A) The stock is worth $30 today.
B) The stock is worth $0 today.
C) The stock paid no dividends during the year.
D) Both B and C must be true.

Question

Quizplus · Accepted Answer

A -100 percent return means the investment's value dropped to 0, making B true. Whether dividends were paid is unrelated to the stock's market value change, so C's truth is independent of the return rate. Thus, D is correct, as both B and C must be true.

Moshe Purchased a Stock for $30 Last Year