Question: calculate the annual inflation rate betweenandnbsp30th june 1975andnbspwhen the consumer...
An investor bought a stock for $13 (at t=0) and one year later it paid a $2 dividend (at t=1). Just after the dividend was paid, the stock price was $7 (at t=1). Inflation over the past year (from t=0 to t=1) was 4% pa, given as an effective annual rate. Which of the following statements is NOT correct? The stock investment produced a:
Nominal capital return of -33.431953% pa.
Nominal income return of 15.384615% pa.
Real capital return of -48.224852% pa.
Real income return of 14.792899% pa.
Real total return of -33.431953% pa.