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1.Last year, you purchased 200 shares of stock for $3,400. The stock pays an ann

ID: 2697624 • Letter: 1

Question

1.Last year, you purchased 200 shares of stock for $3,400. The stock pays an annual dividend of $0.04 per share. Today, you sold your shares for $3,740. What is your total percentage return on this investment?



A.

9.89 percent


B.

10.00 percent


C.

10.13 percent


D.

10.24 percent



2. Which one of the following had the largest risk premium for the period of 1926-2008?



A.

long-term corporate bonds


B.

small-company stocks


C.

large-company stocks


D.

U.S. Treasury bills


A.

9.89 percent


B.

10.00 percent


C.

10.13 percent


D.

10.24 percent



Explanation / Answer

D.10.24 percent((3740-3400)+8/(3400))

B.small-company stocks