What Is the Return to an Investor Who Purchases a Stock

question 29

Multiple Choice

What is the return to an investor who purchases a stock for $30,receives a $1.50 dividend at the end of the year,and then sells the share for $28.50?

• A) −5%
• B) 0%
• C) 5%
• D) 10%

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Definitions:

Relative Frequency Histogram

A type of histogram that displays the relative frequencies, which are the proportions or percentages, of data points in consecutive intervals.

Class Interval

A range of values within which data points in a dataset are grouped for the purposes of frequency distribution.

Frequency Distribution

A summary of how often each value in a set of data occurs.

Relative Frequency Distributions

Statistical tools used to describe the number of times a particular value occurs in relation to the total number of values.