Assume stocks a and b have had identical stock prices every


Assume stocks A and B have had identical stock prices every day for the past three years. Stock A pays a dividend but Stock B does not. Which one of these statements applies to these stocks for the last three years?

Their annual total rates of return are equal.

Stock A's total return has been higher than Stock B's every year.

Stock B's capital gain has exceeded Stock A's every year.

Stock A's total return had to be positive every year.

Stock B's holding period return exceeded that of Stock A

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Financial Management: Assume stocks a and b have had identical stock prices every
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