Use the Table for the Question(s)below

question 50

Multiple Choice

Use the table for the question(s) below.
Consider the following realised annual returns:

-McCoy paid a one-time special dividend of $3.20 on 18 October 2016. Suppose you bought McCoy stock for $47.00 on 18 July 2016, and sold it immediately after the dividend was paid for $63.32. What was your realised return from holding McCoy stock?

• A)41.5%
• B)6.8%
• C)34.7%
• D)4.15%

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Definitions:

Stock Returns

The gain or loss made on a stock, including dividends, over a specific period, expressed as a percentage of the investment's initial cost.

Efficient Market

A market hypothesis that states all available information is fully reflected in asset prices, implying that stocks always trade at their fair value, making it impossible to beat the market through expert stock selection or market timing.

Risk-Adjusted Returns

A measure of the return on an investment relative to the risk of that investment, often used to assess the performance of investment managers.

Large Firms

Companies with a significant market capitalization, often leading in their respective industries and markets due to their size and influence.