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The Price of a Stock Is $55 at the Beginning

Question 33

Multiple Choice

The price of a stock is $55 at the beginning of the year and $50 at the end of the year. If the stock paid a $3 dividend and inflation was 3%, what is the real holding-period return for the year?


A) -3.64%
B) -6.36%
C) -6.44%
D) -11.74%

Correct Answer:

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