The Income Yield and Capital Gain Yield of a Stock

question 50

Multiple Choice

The income yield and capital gain yield of a stock are 4.90 percent and 7.37 percent, respectively.The stock paid a quarterly dividend of $0.65 per share during the year.What amount was originally paid for the stock?

• A)$35.28
• B)$37.01
• C)$53.06
• D)$56.97

---

Definitions:

Conjunction Fallacy

A reasoning error where it's believed that particular scenarios are more likely than a broad, general situation.

Representativeness Heuristic

A cognitive shortcut that involves making judgments based on how much one event resembles another event, often leading to bias in decision-making.

Occupation

A person's job or profession, often defining a large part of their identity and socioeconomic status.

Survey Data

Information collected from a sample of individuals through their responses to questions, used in research to infer about a larger population.