The Price of a Share Is $55 at the Beginning

question 18

Multiple Choice

The price of a share is $55 at the beginning of the year and $50 at the end of the year. If the share paid a $3 dividend and inflation was 3%, what is the real holding period return for the year?

• A)-3.64%
• B)-6.36%
• C)-6.44%
• D)-11.74%

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Definitions:

Drive Wheel

A wheel of a vehicle that receives power from the engine or motor to move the vehicle forward or backward.

Spinout

A situation where a vehicle loses traction, causing it to rotate uncontrollably.

Power Divider

A mechanical device in vehicles, particularly in heavy-duty trucks, that splits the driving force between the front and rear axles to improve traction.

Interaxle Differential

A mechanism that allows for differential speeds between the front and rear axles of a multi-axle vehicle, improving maneuverability and traction.