Question

Actual and adjusted prices of a stock on January 15 were $45.75 and $12.4578, respectively. On February 22, the stock had a 3-for-1 split. On March 10, the stock paid a dividend of $0.75 per share. On April 15, the actual and adjusted prices of the stock were $20.45 and $17.3217. What was the return on the stock between January 15 and April 15?

а. - 53.66%

b. 34.10%

c. 35.74%

d. 39.04%

You invested $25,000 in a mutual fund 3 years ago. The mutual fund paid dividends of $800, $875 and $975 at the end of years 1, 2 and 3. After the third dividend you cashed your investment for $29,000. What was your annual rate of return on this investment?

a. 8.42%

b. 8.87%

c. 16.00%

d. 26.60%

3. A stock provided a return of 3 percent in the first quarter, 15 percent in the second quarter, −10 percent in the third quarter and 5 percent in the fourth quarter. The return over the year from this stock was
a. 13%   b.11.94% c. -23% d.- 0.23%

If the effective annual rate of return is 16 percent per year, the equivalent quarterly rate of return is
a. less than 4 percent
b. equal to 4 percent
c. more than 4 percent
d. 16 percent

Answer 1