You Purchase a Share of CAT Stock for $90

question 62

Multiple Choice

You purchase a share of CAT stock for $90. One year later, after receiving a dividend of $4, you sell the stock for $97. What was your holding-period return?

• A) 14.44%
• B) 12.22%
• C) 13.33%
• D) 5.56%

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Definitions:

Changing Demographics

The varying characteristics of populations over time, such as age, race, and gender, which can impact social, economic, and political structures.

External Environment

The external factors, forces, situations, and events outside an organization that can affect its strategies and performance.

Abrasion-Resistant

Refers to the capacity of a material to withstand wear, tear, or degradation from friction and continuous use.

Competitive Strategy

Strategic approaches that a company uses to gain a competitive advantage over its rivals in the market, such as cost leadership, differentiation, or focusing on a niche market.