What Rate of Return Is Expected from a Stock That

question 90

Multiple Choice

What rate of return is expected from a stock that sells for $30 per share,pays $1.54 annually in dividends,and is expected to sell for $32.80 per share in one year?

• A) 15.03%
• B) 14.28%
• C) 14.09%
• D) 14.47%

---

Definitions:

Variable

An element, feature, or factor that is liable to vary or change.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from their mean.

Scores

Numerical data representing individual performance or achievement in a test, assessment, or experimental condition.

Average Deviation

The average difference between each data point in a set and the mean of that set.