What Is the Rate of Return on a Preferred Stock

question 61

Multiple Choice

What is the rate of return on a preferred stock that has a par value of $50, a market price of $46.50, and a dividend of $4.10?

• A) 8.20%
• B) 11.34%
• C) 8.82%
• D) 12.20%

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Definitions:

Probability Distribution

A function dedicated to evaluating the chances of different potential results within an experiment's context.

Population Parameters

Quantitative characteristics of a population, such as mean or standard deviation, that are usually unknown and estimated from samples.

Nonparametric Methods

Statistical methods that are not based on parameterized families of probability distributions and are used when data doesn't fit standard distributions.

Ordinal Data

A type of categorical data where the categories have a natural order or sequence but the intervals between the categories are not necessarily uniform.