Carter's Preferred Stock Pays a Dividend of $1

question 81

Multiple Choice

Carter's preferred stock pays a dividend of $1.00 per quarter.If the price of the stock is $45.00,what is its nominal (not effective) annual rate of return?

• A)8.03%
• B)8.24%
• C)8.45%
• D)8.67%
• E)8.89%

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Definitions:

Joint Probability Distribution

Describes a probability distribution for two or more random variables simultaneously.

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The weighted average of all possible returns for an investment, based on the probabilities of each outcome.

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