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A Stock Is Purchased for $50 on January 1 and Sold

question 43

Essay

A stock is purchased for $50 on January 1 and sold on December 31 for $72. A $5.00 per share dividend is paid at the end of the year.
(a) Calculate return (R).

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Definitions:

Standard Deviation

The statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

Margin of Error

A measure of the range of values below and above the sample statistic in a confidence interval.

Sample Mean

The average value of a sample set of numbers, estimated from a subset of a population.

Margin of Error

Represents the maximum amount by which the sample results are expected to differ from the actual population parameter.

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