If a stock pays dividends at the end of each quarter,with realized returns of R1,R2,R3,and R4 each quarter,then the annual realized return is calculated as:
A)Rannual = .
B)Rannual = (1 + R1)(1 + R2)(1 + R3)(1 + R4).
C)Rannual = (1 + R1)(1 + R2)(1 + R3)(1 + R4)- 1.
D)Rannual = R1 + R2 + R3 + R4.

Question

If a stock pays dividends at the end of each quarter,with realized returns of R1,R2,R3,and R4 each quarter,then the annual realized return is calculated as:
A)Rannual = . 
B)Rannual = (1 + R1)(1 + R2)(1 + R3)(1 + R4). 
C)Rannual = (1 + R1)(1 + R2)(1 + R3)(1 + R4)- 1. 
D)Rannual = R1 + R2 + R3 + R4.

Quizplus · Accepted Answer

The Answer is C

If a Stock Pays Dividends at the End of Each