Christine Owns a Stock That Dropped in Price from $43

question 77

Multiple Choice

Christine owns a stock that dropped in price from $43.57 per share to $39.49 per share over the past year. The dividend yield on that stock is 1.6 percent. What is her total return on this investment for the year?

• A)−11.31%
• B)−10.49%
• C)−9.11%
• D)−8.73%
• E)−8.04%

---

Definitions:

Asymmetric Information

A situation where one party in a transaction has more or superior information compared to another, leading to imbalances in transactions.

Federal Government

The national government of a federal country, which holds the authoritative power to govern the nation as a whole, distinct from regional or state governments.

Medicare Program

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Adverse Selection

A situation in which sellers have information that buyers do not (or vice versa) about some aspect of product quality.