Last Year, Marsha Purchased a Stock at a Price of $21.36

question 175

Multiple Choice

Last year, Marsha purchased a stock at a price of $21.36 a share. Over the course of the year, she received $.60 in dividends per share while inflation averaged 3.2%. Today, Marsha sold her shares
For $22.80 a share. What is Marsha's real rate of return on this investment?

• A) 5.85%
• B) 6.15%
• C) 6.30%
• D) 6.44%
• E) 6.51%

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Definitions:

Charles Spearman

A British psychologist who is best known for his work in statistics and intelligence theory, notably for conceptualizing general intelligence (g).

General Intelligence

A theoretical measure of an individual's overall mental capability, often referred to as the 'g factor' in psychometric assessments.

Specific Abilities

Distinct skills or competencies in narrowly defined areas, contrasting with general intelligence.

Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that intelligence is not a single entity, but a combination of different types of intelligences including linguistic, logical-mathematical, and spatial, among others.