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.

Identify the users and uses of accounting information.

Understand the characteristics that distinguish different forms of business organization.

Explore various opportunities within accounting and its related fields.

Understand and explain the importance of ethics in accounting.

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Definitions:

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A measure of the efficiency and effectiveness of a team in achieving its goals, often evaluated by the output or outcomes relative to input.

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