Question

Consider the following price and dividend data for Ford Motor

Company:

Date

Price

($)

Dividend

($)

December

31,

2004

$

1

4

.

5

3

January

26,

2005

$

1

3

.

8

4

$

0

.

1

5

April

28,

2005

$9.14

$

0

.

1

5

July

29,

2005

$10.74

$

0

.

1

5

October

28,

2005

$8.02

$

0

.

1

5

December

30,

2005

$7.72

Assume that you purchased Ford Motor Company stock at the closing price on December

31,

2004 and sold it at the closing price on December

30,

2005. Y

our

realized annual return is for the year 2005 is closest

to:

A.

%

−

4

1

.

4

B.

%

−

4

5

.

8

C.

%

−

4

3

.

6

1

D.

%

−

3

9

Answer 1