Use the Information Below for the Following Problem(S)

question 33

Multiple Choice

Use the Information Below for the Following Problem(S)
You purchased 100 shares of GE common stock on January 1, for $29 a share. A year later you received $1.25 in dividends per share and you sold it for $28 a share.
-Refer to Exhibit 1.9.Calculate your holding period return (HPR) for this investment in GE stock.

• A) 0.9655
• B) 1.0086
• C) 1.0357
• D) 1.0804
• E) 1.0973

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Definitions:

F-Distribution

A probability distribution that arises in the analysis of variances for comparing sample variances.

Degrees of Freedom

Defines the number of independent values or quantities that can vary in an analysis without breaking any constraints.

Two-Sample T Test

A statistical analysis used to compare the means of two independent samples to determine if there is a statistically significant difference between them.

Pooled Estimate

A method to estimate a combined variance from two or more groups that assumes the groups have the same variance.