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cupoosta [38]
3 years ago
8

Ou invested $4,500 in a project which gave you a return of 14.1% the 1st year. You were quite happy, but the 2nd year wasn't as

good. You lost 4.8% that year. The 3rd year was better - you made 7.2% on this investment. What was your annual average rate of return over the three years?
Business
1 answer:
horsena [70]3 years ago
5 0

Answer:

5.21%

Explanation:

14.1% or 14.1/100 = +0.141 (gain)

4.8% or 4.8/100 = -0.048 (loss)

7.2% or 7.2/100 = +0.072 (gain)

Firstly, we will add 1 to each annual return

1st year = 0.141 + 1 = 1.141..................R1

2nd year = -0.048 + 1 = 0.952.........R2

3rd year = 0.072 + 1 = 1.072.............R3

Now, we need to calculate the combined percent

(R1*R2*R3)^n . n =3

(1.141*0.952*1.072)^(1/3)

= 1.164440704 ^ (1/3)

=  1.05205665

Annualized average rate of return = Combined % - 1

= 1.05205665- 1

= 0.05205665

= 0.05205665 * 100

= 5.205665%

= 5.21%

So, required annual average rate of return over the three years is 5.21%

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MakcuM [25]

Explanation:

The management of people in an organization is a constant and dynamic process that must be well structured, as it is the employees of the organization who will assist in the achievement of organizational goals and objectives.

Therefore, this process of recruiting, training, evaluating and paying employees must be well established in the organization as a fundamental process for organizational success. Each stage of the personnel management process is essential, and must always be organized, evaluated and monitored, so that there is continuous improvement in a company in all its systems. Through effective people management, there is greater motivation, greater productivity and greater organizational positioning.

5 0
3 years ago
During 2019, Travis purchases $13,000 of used manufacturing equipment (7-year property) for use in his business, his only asset
skelet666 [1.2K]

Answer:

$13,000

Explanation:

Most property purchased during 2019 and beyond, may be expenses using Section 179 tax deductions. The limit for 2019 was $1 million and that is way more than $13,000. Section 179 is one of the few benefits that small business got from the Tax Cut and Jobs Act, and it can be really useful.

Businesses can deduct the full purchase price of qualifying equipment (used manufacturing equipment qualifies) as long as it was purchased after January 1, 2019. This is an incentive created to encourage businesses to buy more equipment and invest more.

5 0
3 years ago
Scene: A savvy investor has a mix of stocks and bonds in their investment portfolio. Why would it be a good idea to mix stocks a
Komok [63]

Answer:

Explanation:

It wouldn't now, unless you are very wealthy. Interest rates are very low and you would have to go into the junk bond market to get any kind of decent return. But Junk Bonds are or can be very unstable and you get a high return for a very chancy situation.

I think I know what the question wants you to understand. You need something that will provide with income. You just don't want to deal with bonds. There are stocks around that pay dividends; they are very conservative and if they go down, that will be the least of your problems.

You can then devote your resources to capital gains or pure stocks: no interest payments, but the stock itself goes up. There is a whole different tax system for capital gains.

You should also get some gold or silver as insurance.

Since you have asked about stocks and bonds, I have not said anything about cryptos. That's an option, but you have to be very knowledgeable because those things can be an investment nightmare.

7 0
3 years ago
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with 2 risky securities, X
Leokris [45]

Answer:

% in T bills = 18.92%, % in P = 81.08%

Explanation:

Portfolio return = Weighted average return

Return of portfolio P = 0.14*0.6 + 0.10*0.4

Return of portfolio P = 0.124

Let % money in T bills be x

0.11 = 0.05*x + 0.124*(1-x)

0.11 = 0.05x + 0.124 - 0.124x

0.014 = 0.074x

x = 18.92%

Hence, % in T bills = 18.92%, % in P = 81.08%

3 0
3 years ago
What is an example of an inflation risk?
ale4655 [162]
The price of an item can rise or fall
5 0
3 years ago
Read 2 more answers
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