Calculated his return on investment

Assignment Help Financial Management
Reference no: EM13873525

George bought an investment one year ago and just calculated his return on investment. He found that his purchasing power has increased by 15% as a result of his investment. If the inflation over the period was 4%, his _______________.

Note: (1+R) = (1+r)(1+h), but you don’t need calculation here.

A. real return on investment is more than 15%

B. nominal return on investment is more than 15%

C. nominal return on investment is 11%

D. real return on investment is equal to 4%

Reference no: EM13873525

Questions Cloud

Cash and marketable securities : From the balance sheet you find the following balances: cash and marketable securities = $200,000, accounts receivable = $1,100,000, inventory = $2,000,000, accrued wages and taxes = $500,000, accounts payable = $600,000, and notes payable = $100,000..
Design a bfs-based algorithm : Design a BFS-based algorithm (pseudo code) for directed graph that computes the total number of paths from vertex srcU to vertex destV.
In addition to comparison with industry ratios : In addition to comparison with industry ratios, it is also helpful to analyze ratios using
Define the term code of business conduct : Define "code of business conduct". Discuss businesses should concern themselves with developing a code of business conduct? If so, what variables should be included?
Calculated his return on investment : George bought an investment one year ago and just calculated his return on investment. He found that his purchasing power has increased by 15% as a result of his investment. If the inflation over the period was 4%, his _______________.
The reduction of an asset is a source of funds : the reduction of an asset is a source of funds
What risks does this infection pose to the woman : What disease does this patient have and what risks does this infection pose to the woman?
Equity multiplier-What was the firms ROE : Company abc had a profit margin of 6.25% , total asset turnover of 1.5 and an equity multiplier of 1.8. What was the firms ROE? What would happen if the equity multiplier went up to 2.5?
Calculate the annual cash flows from fixed-payment annuity : Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 20-year annuity is $1.8 million and the annuity earns a guaranteed annual return of 10 percent. The payments are to begin at the end of the cu..

Reviews

Write a Review

Financial Management Questions & Answers

  Considering a project with a five-year life and initial cost

Your firm is considering a project with a five-year life and an initial cost of $120,000. The discount rate for the project is 12%. The firm expects to sell 2,100 units a year. The cash flow per unit is $20. The firm will have the option to abandon t..

  Calculate the cost of equity

Using the DCF method, calculate the cost of equity. Using the SML method, calculate the cost of equity.

  Preparing a vacation to Europe in the future

You are preparing a vacation to Europe in the future. You plan to save $400 a month beginning today, and estimate you earn 1% per month on your savings. Your goal is to save $5,000. How long it take to save this amount?

  Requirement for a code of ethics in the civil service

Requirement for a Code of Ethics in the Civil Service

  Calculate the value of the securities

Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling securities that call for 4 payments of $50 (1 payment at the end of each of the next 4 years) plus an extra paym..

  What are the firms average and marginal taxes

Corporate income tax/ Meyer Inc has taxable income (earnings before taxes) of 300,000. Calcualte Meyer's federal income tax liability using the tax table . What are the firm's average and marginal taxes?

  Calculate mean stitching time and the standard deviation

A machine cost $60,200; it has an estimated residual value of $6,000 and an expected life of 300,000 units. What would be the depreciation in year three if 60,000 units were produced? Calculate the mean stitching time and the standard deviation to th..

  Developing a balanced scorecard in unit

Developing a Balanced Scorecard In unit, you are exploring the need for organisations to measure and manage performance against objectives, as well as the potential effectiveness of tools such as Balanced Scorecards and Strategy Maps as aids in ca..

  Determines the finished goods inventory level

Which one of the following inventory management appraoches determines the finished goods inventory level and then works backward until the raw material needs are determined?

  Two different salary arrangements-investment banking

You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $82,000 per year for the next two years, or you can have $71,000 per year for the next two years, along wi..

  The total return of the portfolio reduced by trading costs

Suppose that every time a fund manager trades stock, transaction costs such as commissions and bid–ask spreads amount to 1.9% of the value of the trade. If the portfolio turnover rate is 50%, by how much is the total return of the portfolio reduced b..

  Which stock had the lowest monthly return

Which stock had the lowest monthly return and which stock had the largest monthly return? What month and year did these low and high returns occur?

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