Determine the real rate of return on investment, Accounting Basics

Assignment Help:

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. 


Related Discussions:- Determine the real rate of return on investment

Transponder, A user buys a new transponder for $20. What debit and credit e...

A user buys a new transponder for $20. What debit and credit entries would need to be made?

Career in information systems, Q. Career in information systems? Have y...

Q. Career in information systems? Have you yet heard the sayings knowledge is power or else information is money? When people talk about accounting what they are really talking

Prepare a narrative describing the transaction cycle process, Assignment: ...

Assignment: This assignment will be to describe and document the internal controls over a transaction cycle at a local business. A transaction cycle could be the sales process,

What are bad debts, Q. What are Bad debts? Bad debts -- amounts owed to...

Q. What are Bad debts? Bad debts -- amounts owed to a company which aren't going to be paid. An accountreceivable becomes a bad debt when it's recognized that it won't be paid.

Balance sheet, where dose inventory changes aper on the balance sheet

where dose inventory changes aper on the balance sheet

Illustrate about accounting cycle, Q. Illustrate about accounting cycle? ...

Q. Illustrate about accounting cycle? The accounting cycle is a series of points performed during the accounting period some throughout the period and some at the end to reco

What is ledger, Ledger = From the Journal entries we will post the trans...

Ledger = From the Journal entries we will post the transactions in a book known as Ledger. Ledger is a book which contains the summarized and classified form of permanent record

Accounting, Accounting Accounting has evolved and emerged within respo...

Accounting Accounting has evolved and emerged within response to the social & economic requirement of the society. The accounting procedure has its own syntax. The primary sys

Write Your Message!

Captcha
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