If Raoul Purchases a Share of Stock for $40 and Four

question 55

Multiple Choice

If Raoul purchases a share of stock for $40 and four years later sells it for $160, he will realize a

• A) dividend of $120.
• B) dividend of $200.
• C) capital gain of $120.
• D) capital gain of $160.

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Definitions:

Perfectly Rational

A theoretical state in decision-making where an individual makes decisions that lead to the optimal outcome, based entirely on logical reasoning.

Economic Persons

A theoretical concept suggesting that individuals act out of self-interest, making rational decisions to achieve the greatest personal benefit.

Perfectly Rational

A theoretical concept where individuals make decisions with complete logic, maximizing utility.

Nobel Prize

A set of international awards granted annually in several categories such as Peace, Literature, and various sciences, recognizing significant contributions to humanity.