Jason Purchased ABC Stock at $40 Per Share and DEF

question 87

Multiple Choice

Jason purchased ABC stock at $40 per share and DEF stock at $35 per share on the same day in 2020. Exactly 6 months later, the ABC stock is worth $42.00 per share and has not paid a dividend while the DEF stock is worth $36 per share and has paid 2 quarterly dividends of $0.50 each. The holding period returns are

• A) ABC, $2.00 and DEF $2.00.
• B) ABC 5% and DEF 2.9%.
• C) ABC 5% and DEF 5.7%.
• D) The holding period return cannot be determined because we do not know the discount rate.

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Definitions:

Micro Levels

Analysis or phenomena observed at a small scale, often focusing on individual or small group interactions within a society.

Historically Accumulated

Pertains to knowledge, traditions, or characteristics gathered and developed over long periods of time.

Critical Race Theory

An intellectual movement and framework that examines society and culture as they relate to categorizations of race, law, and power.

Race

A social construct that categorizes human populations based on physical characteristics such as skin color, facial features, and hair texture.