The Expected Return on a Share of Stock, Say, Over

question 21

Multiple Choice

The expected return on a share of stock, say, over a year, is

• A)the interest rate plus the inflation rate.
• B)the expected dividend plus the expected change in the price of the stock, all divided by the share price at the time of purchase.
• C)the interest rate minus the inflation rate.
• D)Two of these answers are correct.

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Definitions:

Bromo

A prefix indicating the presence of a bromine atom in an organic compound, typically used in nomenclature to denote substitution position.

IUPAC Name

The systematic naming convention for chemical substances assigned based on the structure of molecules, according to rules established by the International Union of Pure and Applied Chemistry.

Alkane

A saturated hydrocarbon with single bonds only, having the general molecular formula CnH2n+2, where n is the number of carbon atoms.

Molecular Formula

A notation showing the types and numbers of atoms in a molecule, without indicating their arrangement.