Determine the real rate of return on investment, Accounting Basics

1) A) Suppose Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $315,000. Assume the value of the CPI at the date of Jean's purchase was 180 and rose by the sale date one year later to 190 while the value of the GDP Deflator was 120 at the time of her purchase and rose to 125 by the date she sold her shares. What was Jean's real rate of return on this investment?

B) Explain why you used either the CPI data or the GDPD data in your answer to part A. 

Posted Date: 3/29/2013 2:49:10 AM | Location : United States







Related Discussions:- Determine the real rate of return on investment, Assignment Help, Ask Question on Determine the real rate of return on investment, Get Answer, Expert's Help, Determine the real rate of return on investment Discussions

Write discussion on Determine the real rate of return on investment
Your posts are moderated
Related Questions
What are the elements of accounting assets Assets are items with money value which are owned by a business. Some instance are: cash, accounts receivable (selling services or g

Liquidity refers to a company's cash position, availability of resources to meet short-term cash requirements, and overall ability to obtain cash in the normal course of business.

hi my name is harpreet kaur. I need help for my assignment, how can I contact you? and how much time take to make one assignment?


User accounts are the primary means of access for actual people to the system (computer), and these accounts insulate the user and the environment, preventing the users from damagi

partner investments, journal entries. The LP partnership was formed on January 1, 19X7, by investments from Bill Levy and Marv Parcells. Levy contributed $30,000 cash and $80,000 o

Q. What do you understand by Deferred income? Deferred income -- a liability which arises when a company is paid in advance for services orgoods that will be provided later. Fo

Houston Corporation has the following stock outstanding:     In 2012, Houston paid $330,000 in dividends. No dividends were paid in 2011 or 2010. Required : a)

Cash $10,000 Accounts Payable $7,000 Accounts Receivable $6,400 Mortgage Payable $65,000 Supplies $1,500 Long-term Debt $36,000 Building $150,000 Notes Payable $9,000 Equip

what do you mean by 90% of the entire issue to be received before the allotment of shares?