Average annual rate of return on your investment

Assignment Help Microeconomics
Reference no: EM13687020

Presume you buy a share of stock for $20 and sell it for 40. Then your profit is $20. If that happens within a year, your rate of return is an impressive 100%. If it takes 6 years, what would be the average annual rate of return on your investment?

Reference no: EM13687020

Questions Cloud

What is the cost per cubic inch of the best alternative : While studying for the engineering economy final exam, you and friends discover yourself craving a fresh pizza. You can't spare the time to pick up the pizza and must have it delivered. Pick Up Sticks offers a 1.25 inch thick (including toppings), 15..
Economically attractive as conventional gasoline fueled car : Ethanol blended with gasoline can be used to power a "flex fueled' car. One particular blend that is gaining in popularity is E 85, which is 85 percent ethanol and 1b% gasoline. E 85 is 80% cleaner burning than gasoline alone, and it reduces our depe..
Which is a key feature of the market system : Which is a key feature of the market system?
What factors will cause a change in demand and supply : What factors (determinants) will cause a change in demand and what factors (determinants) can cause a change in supply? Can you give any current examples of a determinant of demand that you see changing in any industry or marketplace or a determinant..
Average annual rate of return on your investment : Presume you buy a share of stock for $20 and sell it for 40. Then your profit is $20. If that happens within a year, your rate of return is an impressive 100%. If it takes 6 years, what would be the average annual rate of return on your investment?
Cups size is independently drawn from the distribution : Presume the expected size of each cup of punch is 2 ounces and the standard deviation of the size of a cup is 1/2 ounce and each cup is poured independently. Presume each cup's size is independently drawn from the distribution. What is the approximat..
Consumer surplus at this competitive equilibrium : Market demand is p = 540 - q and the market supply equation is p = 60 + 2q. Use this data for the following questions. (The question is in bold bellow) The competitive equilibrium is:? Consumer surplus at this competitive equilibrium is:?
Corporate bond yields rise while treasury bond yields fell : The US treasury isn't the only issue of bonds. Corporations also issue bonds that have future payment structures like U.S. Treasuries. Of course, unlike the federal government, corporations can go bankrupt, leaving their bondholders unable to collect..
Compute the current yield and the coupon rate : Consider a $1,000.00 face value bond with a $40 annual coupon and 8 years until maturity. Compute the current yield and the coupon rate for each of the following: The bond is purchased for $850

Reviews

Write a Review

Microeconomics Questions & Answers

  Spreadsheet 2 an individual is considering two investment

spreadsheet 2. an individual is considering two investment projects. project a will return a zero profit if conditions

  Write down the difference between explicit and

the following questions address some of the price and output decisions faced by firms other than those found in perfect

  To calculate the real return

One year ago, you bought a bond for $10,000.00. You received interest of $400.00 at the end of the year, as well as your $10,000.00 principal calculate the real return.

  Briefly describe the relationship between the three rates

Briefly describe the relationship between the three rates.

  Justify the long-term nature of the contract with cgi group

The division of a large office services company that makes high-end copiers recently signed a five-year, $25 million contract for IT services from CGI Group, a Canadian information technology company.

  What is the change in deadweight loss n what transfers occur

The best computer company just developed a new computer chip on which it immediately requires a patent - draw a diagram that shows the consumer surplus, producer surplus and total surplus

  Problemyou are required to perform a project appraisal of a

problemyou are required to perform a project appraisal of a proposed new road. the road will be a dual lane by-pass

  Illustrate the relationship between a perfectly competitive

At a price of $5 the profit-maximizing output for a perfectly competitive firm is 1,000 units per year. If the average total cost is $3 per unit, what will be the firm’s profit? If the average total cost is $6 per unit, what will be the firm’s profit..

  How much profit will each firm earn

Set up the game and find the equilibrium assuming that Apple and Yahoo move simultaneously, If the firms are Cournot duopolists, how much profit with each firm earn and what will the market price be and how much profit will each firm earn?

  What will the inflation rate be

What will the inflation rate be?

  How do the equilibrium price and quantity change

Presume that the demand curve for wheat is, How do the equilibrium price and quantity change?

  Develop the overall index of resource reliance by adding

create an overall index of resource reliance by adding together energy depletion forest depletion and mineral depletion

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd