If Teresa Purchases a Share of Stock for $15 and Three

question 194

Multiple Choice

If Teresa purchases a share of stock for $15 and three years later sells it for $60, she will realize a

• A) dividend of $45.
• B) dividend of $60.
• C) capital gain of $45.
• D) capital gain of $60.

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Definitions:

Game Theory

A field of mathematics that analyzes competitive situations where the outcome of a participant's choice of action depends on the actions of other participants.

Advertise

The action or process of promoting one's products or services in various media to attract potential customers or clients.

Joint Profits

The combined earnings accrued from the collaboration of two or more firms.

Nash Equilibrium

In game theory, the equilibrium that results when all players choose the action that maximizes their payoffs given the actions of other players, ignoring the effect of that action on the payoffs of other players; also known as noncooperative equilibrium.