Assume Stocks a and B Have Had Identical Stock Prices

question 8

Multiple Choice

Assume stocks A and B have had identical stock prices every day for the past 3 years.Stock A pays a dividend but Stock B does not.Which one of these statements applies to these stocks for the last 3 years?

• A)Their annual total rates of return are equal.
• B)Stock A's total return has been higher than Stock B's every year.
• C)Stock B's capital gain has exceeded Stock A's every year.
• D)Stock A's total return had to be positive every year.
• E)Stock B's holding period return exceeded that of Stock A.

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