Christine Owns a Stock That Dropped in Price from $42

question 89

Multiple Choice

Christine owns a stock that dropped in price from $42.40 to $37.20 over the past year. The dividend yield on that stock is 1.4 percent. What is her total return on this investment for the year?

• A) -11.31 percent
• B) -10.86 percent
• C) -9.91 percent
• D) -9.59 percent
• E) -8.51 percent

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Definitions:

Economic Profit

The total revenue of a business minus its explicit and implicit costs, representing the total benefit to the owner beyond all opportunity costs.

Political Consultant

A professional advisor who helps politicians with campaign management, public relations, and strategic advice.

Economic Profit

The gap between a company's overall income and its combined direct and indirect expenses.

Mutual Fund

A financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.