If a Stock Pays Dividends at the End of Each

question 14

Multiple Choice

If a stock pays dividends at the end of each quarter,with realized returns of R₁,R₂,R₃,and R₄ each quarter,then the annual realized return is calculated as:

• A)R_annual = (1 + R₁)(1 + R₂)(1 + R₃)(1 + R₄)- 1
• B)R_annual = R₁ + R₂ + R₃ + R₄
• C)R_annual = (1 + R₁)(1 + R₂)(1 + R₃)(1 + R₄)
• D)R_annual =
• E)R_annual = (1 + R₁)(1 + R₂)(1 + R₃)(1 + R₄)+ 1

---

Definitions:

Dopamine

A neurotransmitter in the brain that plays a critical role in reward, motivation, and pleasure.

Cocaine

A powerful and addictive stimulant drug derived from the leaves of the coca plant, which affects the central nervous system.

Psychosis

A severe mental health disorder characterized by disconnection from reality, which may include hallucinations, delusions, and impaired thoughts.

Chronic Use

The habitual use of a substance or engagement in behavior that typically continues over an extended period, often leading to dependency or addiction.