You Bought Some Shares of Stock And, Over the Next

question 184

Multiple Choice

You bought some shares of stock and, over the next year, the price per share increased by 5 percent, as did the price level. Before taxes, you experienced

• A)both a nominal gain and a real gain, and you paid taxes on the nominal gain.
• B)both a nominal gain and a real gain, and you paid taxes only on the real gain.
• C)a nominal gain, but no real gain, and you paid taxes on the nominal gain.
• D)a nominal gain, but no real gain, and you paid no taxes on the transaction.

---

Definitions:

Confidence Interval

Newly defined: A measure indicating the reliability of an estimate, often used to infer about the population parameter from sample data.

Sample

A subset of a population used in statistical analysis to estimate the characteristics of the whole population.

Mean

The average value of a set of numbers, calculated by dividing the sum of all the numbers by the count of the numbers.

Standard Error

The usual measure of spread for the distribution that arises from sampling, typically concerning the mean.