If a Share Pays Dividends at the End of Each

question 14

Multiple Choice

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

• A)R_annual = R₁ + R₂ + R₃ + R_4.
• B)R_annual = (1 + R₁)(1 + R₂)(1 + R₃)(1 + R₄)- 1.
• C)R_annual =.
• D)R_annual = (1 + R₁)(1 + R₂)(1 + R₃)(1 + R₄).

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Definitions:

Natural Gas

A fossil fuel consisting primarily of methane and other hydrocarbons, used as an energy source and feedstock in chemical manufacturing.

Iron Ore

Naturally occurring rocks from which iron (Fe) can be economically extracted, constituting a key raw material for steel production.

Coal

The natural, brown to black rock derived from peat and other plant materials that have been buried, compacted, and heated; used for heating and to generate electricity.

Marine Organisms

Living creatures that inhabit the ocean, ranging from microscopic phytoplankton to large whales, adapted to the marine environment.