The Stock of MNC Inc

question 98

Multiple Choice

The stock of MNC Inc. pays a dividend of $3.44. The stock opened at $89.19 and closed at $90.28. The stock yield is:

• A)3.8%
• B)3.2%
• C)3.1%
• D)4.9%
• E)None of these

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Definitions:

Alphas

The excess returns of an investment relative to the return of a benchmark index, indicating the added value by the portfolio manager.

Betas

A measure of a stock's volatility relative to the overall market; a reflection of its risk compared to the market.

Arbitrage Opportunity

A situation where a trader can make a profit without risk by simultaneously buying and selling the same or equivalent assets in different markets to exploit price differences.

Risk-free Rate

A theoretical return on an investment with zero risk of financial loss, often represented by government bonds.