1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mariarad [96]
2 years ago
10

(This problem combines material in Chapters 2 and 3.) You purchase a stock for $50 and sell the stock for $70 after three years.

a)What is the annual return on your investment if you bought the stock in a cash account
Business
1 answer:
tensa zangetsu [6.8K]2 years ago
5 0

Answer:

11.87% (12% to the nearest whole percentage)

Explanation:

From the perspective of time value of money,we understand that the value of stock after 3 years is the future value while the initial amount at which it was bought is the present value, on that premise,we can determine the annual rate of return using the formula below which shows the relates future and present values together:

FV=PV*(1+r)^n

FV=future value=$70

PV=present value=$50

r=annual rate of return which is unknown

n=investment timing horizon=3

70=50*(1+r)^3

70/50=(1+r)^3

divide indices on both sides by 3

(70/50)^(1/3)=1+r

r=(70/50)^(1/3)-1

r=11.87%

You might be interested in
In addition to​ risk-free securities, you are currently invested in the Tanglewood​ Fund, a​ broad-based fund of stocks and othe
Murrr4er [49]

Answer:  6.29%

Explanation:

Required return = Risk free rate + beta ( expected return - risk free rate)

Beta.

= Correlation * \frac{Volatility of venture}{Volatility of fund} \\\\= 0.16 * \frac{0.8117}{0.2636} \\\\= 0.493

Required return = 3.63% + 0.493(9.03% - 3.63%)

= 6.29%

7 0
3 years ago
An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota, because his spouse's company transferred h
kifflom [539]

Answer:

The correct answer is option a.

Explanation:

An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota because his spouse's company transferred her to St. Paul.

The decorator is distressed because the customers in his target market have, in his words, "banal and bourgeois taste."

The customers in St. Paul have a different taste from the customers that he catered to in Los Angeles. The consumer tastes and preferences may differ from place to place according to the climatic conditions, social status, cultures, etc.

The problem with the decorator is that he does not understands that customer needs are not right or wrong, good or bad. It is not right or wrong if the customers in Minnesota have a different preference from customers in Los Angeles.

6 0
2 years ago
A manager who wishes to be successful in international business should avoid a(n) ________ attitude.
coldgirl [10]

Answer: ethnocentric

Explanation:

6 0
2 years ago
!. without asking, you help a coworker who is burdened by multiple and fast approaching deadlines.
PtichkaEL [24]
I believe it is C, hope this helps!!
8 0
2 years ago
Dennis Galvan works as a campaigner at Green Earth, an environmental organization. Every month, his organization arranges a team
mote1985 [20]

Answer:

social environment

Explanation:

The activities performed as mentioned in the problem is termed as employee engagement activities. Reason behind doing this to increase social interaction which generates understanding between employee. it strengthen social and emotional connection of people and hence employee feel more satisfied towards their work and organization. This is done via increases healthy social engagement and hence social environment is correct answer

7 0
3 years ago
Other questions:
  • Assume that due to unfavorable conditions in a prime honey-producing area, the price of honey increases by 50 percent. the quant
    11·1 answer
  • Paul White, the CFO of Crane Automotive, Inc., is putting together this year's financial statements. He has gathered the followi
    7·1 answer
  • When the risks of the individual components of a project’s cash flows are different, an acceptable procedure to evaluate these c
    14·1 answer
  • An annuity may best be defined as:
    9·2 answers
  • Write each item listed below to the appropriate category . GOODS SERVICES Cutting Hair Doctor Computers Cleaning Business Tasks
    9·1 answer
  • I wanna to know answers for this questions
    11·2 answers
  • Whos the richeist family
    7·1 answer
  •   The brilliant colored ribs of Swiss chard can add excitement to your garnishes as a substitute for which of the following vege
    5·1 answer
  • If the government levies a $1,000 tax per boat on sellers of boats, then the price paid by buyers of boats would a. increase by
    11·1 answer
  • Which of the following is a cause of Cost-Push Inflation?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!