At the start of 2020 you purchase 100 shares of a stock for the market price of $12 per share. At the start of 2021 the stock is worth $15 per share. Sometime during the summer of 2021 the stock has a 3:1 split. At the start of 2022 you sell all your shares for the market price of $8 per share. What is your arithmetic average return per year? A) 25% B) 42.5% C) 50% D) 85% E) 100%

Answers

Answer 1

The arithmetic average return per year is 42.5%. The answer is B)

To calculate the arithmetic average return, we need to find the total return over the investment period and divide it by the number of years.

First, let's calculate the total return. The initial investment was 100 shares x $12 per share = $1200. After the 3:1 split, the number of shares increased to 300, but the market price adjusted to $5 per share.

So, the value of the investment remained the same at $1500 (300 shares x $5 per share). Finally, the investment was sold for $8 per share, which gives a total sales price of 300 shares x $8 per share = $2400. The total return is therefore $2400 - $1200 = $1200.

Next, we need to determine the number of years. The investment period is from the start of 2020 to the start of 2022, which is two years.

Finally, we can calculate the arithmetic average return: ($1200 / $1200)^(1/2) - 1 = 0.425, or 42.5%.

Therefore, the answer is B) 42.5%.

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Related Questions

An initial investment of $930 is appreciated for 19 years in an account that earns 6% interest, compounded continuously. Find the amount of money in the account at the end of the period.

Answers

The amount of money in the account at the end of the period will be $2907.89.

What is the investment?The dedication of an asset to achieve a gain in value through time is referred to as an investment. Investment necessitates the sacrifice of a current item, such as time, money, or effort.The goal of investing in finance is to earn a return on the invested asset. A gain (profit) or loss realized through the sale of a property or investment, unrealized capital appreciation (or depreciation), or investment income such as dividends, interest, or rental income, or a mix of capital gain and income, may constitute the return.To find the amount of money in the account at the end of the period:

Step 1: Define

Identify variables

P = 930

t = 19

r = 6% = 0.06

Step 2: Find Interest

Substitute in variables [Compounded Continuously Formula]: [tex]A=930e^{} ^{19*0.06}[/tex]                  

[Exponents] Multiply:    

[tex]A=930e^{1.14}[/tex]                                                                                  

Evaluate exponents:            

[tex]A=930(3.12677)[/tex]                                                                            

Multiply:            

[tex]A=2907.89[/tex]

Therefore, the amount of money in the account at the end of the period will be $2907.89.

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Under which type of listing will an agent receive a commission only if he is the procuring cause of the sale?

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Under a C) exclusive right to sell, the listing firm will earn a commission if the property sells during the listing period, even if it's a licensee from another firm or the seller who finds the buyer.

Promoting dealers cooperate with the brokers promoting the home to acquire reimbursement for supporting connect them with the right shoppers. The listing broking will pay the promoting agent a commission for finding a purchaser to shop for the belongings.

In most instances, you don't require a college degree to come to be an actual property agent, but it does help capacity profession task seekers stay aggressive and applicable. A partner or bachelor's degree is more than sufficient—perhaps in the enterprise, finance, or some other related subject.

They realize the nearby actual estate market, look into and appraise homes to decide honest marketplace costs, write and provide list presentations to offer dealers a document of their findings, and market and stage homes for sale to attract capacity consumers.

The question is incomplete. Please read below to find the missing content.

Under which type of listing will the seller owe a commission to the listing agent regardless of who is the procuring cause of the sale?

A. Open listing

B. Exclusive agency

C. Exclusive right to sell

D. Net listing

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Berkshire hathaway’s sharpe ratio is ________ than the aggregate stock market for the sample period? (please use the std sharpe ratios)

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Berkshire Hathaway's Sharpe ratio is 0.79 than the aggregate stock market for the sample period.

The Sharpe ratio of Berkshire Hathaway was 0.79 over the period from 1976–2017. Although this Sharpe ratio is nearly double than that of the overall stock market, it is still considered lower than many investors imagine.

Sharpe ratio is considered the measure of risk-adjusted return of a financial portfolio. A portfolio with a higher Sharpe ratio is considered superior relative to its peers.

Berkshire Hathaway's Sharpe ratio of 0.79 means that this fund has had better risk-adjusted performance than the average Global Equity fund. So, the higher the Sharpe Ratio, the better a fund's returns would be in relative to the risk it has taken on.

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With a _______ lifestyle, people select products and services that fulfill their diverse needs and interests, rather than conforming to traditional stereotypes.

Answers

Answer: component

Explanation:

INCOME STATEMENT Evaluation

Listed below are some accounts for Woburn Landscaping Co. for the year ended December 31, 2020. Sort the list of the following accounts into an Income Statement, using appropriate formatting.

Salaries Expense
5,050
Hydro Expense
1,150
Landscaping Revenue
13,100
Repair Expense
980
Rent Expense
4,200
Internet Expense
1,020
Advertising Expense
1,770
Supplies Expense
250
Plant Sales
3,900
General Expense
40

Answers

The income statement net income is $2,540.

Income statement

Income statement for Woburn Landscaping Co. for the year ended December 31, 2020

Revenue:

Landscaping Revenue $13,100

Plant Sales $3,900

Total revenue $17,000

Expenses:

Salaries Expense $5,050

Hydro Expense $1,150

Repair Expense $980

Rent Expense $4,200

Internet Expense $1,020

Advertising Expense $1,770

Supplies Expense $250

General Expense $40

Total expenses $14,460

Net income $2,540

($17,000-$14,460)

Therefore the income statement net income is $2,540.

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One problem with government operation of monopolies is that?

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One problem with government operation of monopolies is that the government typically has little incentive to reduce costs.

What is a monopoly?

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. The demand curve is downward sloping. A monopoly sets the price for its goods and services.

An example of a monopoly is a utility company

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One problem with government operation of monopolies is that a. a benevolent government is likely to be interested in generating profits for political gain. b. the government typically has little incentive to reduce costs. C. a government-regulated outcome will increase the profitability of the monopoly. d. monopolies typically have rising average costs.

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Food and energy prices often complicate the measurement of inflation because supply and demand for these products ______.

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Food and energy prices often complicate the measurement of inflation because supply and demand for these products (A) often change, creating temporary changes in prices.

What are supply and demand?In microeconomics, supply and demand is an economic model of market price determination. It assumes that all else being equal, in a competitive market, the unit price for a specific good or other traded item, such as labor or liquid financial assets, will fluctuate until it settles at a point where the quantity demanded (at the current price) equals the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted. It is the theoretical foundation of modern economics.The aggregate demand-aggregate supply model has also been used in macroeconomics to describe how the quantity of total output and the aggregate price level can be set in equilibrium.

Therefore, food and energy prices often complicate the measurement of inflation because supply and demand for these products (A) often change, creating temporary changes in prices.

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Complete question:

Food and energy prices often complicate the measurement of inflation because supply and demand for these products ______.

A. Often change, creating temporary changes in prices.

B. Are stable in the short run and unstable in the long run.

C. Typically lags behind other goods and services.

D. Are constant, so equilibrium prices rarely change.

Answer:

often change, creating temporary changes in prices

When manufacturing overhead costs are assigned to production in a process cost system, they are debited to.

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When manufacturing overhead costs are assigned to production in a process cost system, they are debited to a work in process account.

What Is a Work-in-Progress (WIP)?

Production and supply-chain management terms for partially finished goods that are awaiting completion include "work-in-progress" (WIP). Raw materials, labor, and overhead expenses expended for goods that are in different phases of manufacturing are referred to as "work in progress," or WIP.

On the balance sheet, WIP is a part of the asset account for inventory. The finished goods account receives these costs after which they are ultimately passed to the cost of sales.

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________ are costs that make customers reluctant to switch to another product or service. Multiple Choice Support activities Loyalty rewards Value chain activities Switching costs

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The answer is switching costs.

The expenses a consumer incurs as a result of switching brands or products are known as switching costs.

Financial, psychological, effort-based, and time-based switching costs are all possible.

High switching costs and low switching costs are two different categories of switching expenses.

To keep customers from migrating to another brand, businesses try to use high switching fees.

High switching costs are a strategy used by businesses with hard-to-perfect products and little competition to increase revenues.

Some businesses that are unable to demand larger switching fees will guarantee lengthy wait times and product delays in order to retain their customer base.

Hence, Switching costs are costs that make customers reluctant to switch to another product or service.

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________ is the most expensive form of marketing communication

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Personal selling is the most expensive form of communication in marketing, costing more to reach each individual customer than other forms of advertising and promotions.

Personal selling is a face-to-face selling technique in which salespeople use their interpersonal skills to convince customers to buy a particular product. The seller tries to highlight the different features of the product to convince the customer that he will only add value. However, getting a customer to buy a product is not what drives an individual's sales all the  time. Usually, companies try to follow this approach with customers to make them aware of a new product.

Personal selling is an essential sales tool for selling complex and technical services that require human touch, personalization, persuasion, and prompt communication.

It is common for high-priced items to use personal selling because it helps the company to inform and convince customers to use personalized selling methods to gain more trust.

It is also considered an important promotional tool in B2B sales because these sales involve fewer leads and high transaction costs.

Personal selling provides a detailed explanation or demonstration of a product. This capability is particularly desirable for complex or novel goods and services. Sales messages can vary depending on the motivations and preferences of each potential customer.

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There can be infringement of patents, copyrights, trademarks, trade names and trade dress. True False

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"There can be an infringement of patents, copyrights, trademarks, trade names, and trade dress."

This statement is TRUE.

Trade dress . Refers to the image and overall appearance of the product. It is as protected as a trademark. The appearance and overall appearance of the trademarked product (“look and feel”).

Trade dress is a kind of mark aimed at the unique appearance of a product or service that identifies its origin. To be registrable, the trade dress must act as a source identifier, be market distinguishable, be used in commerce, and primarily not function.

Trade dress can be any word, name, symbol, device, or combination thereof used to identify the product. Trademarks can be used to protect the exclusive right to identify a product or service.

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Implementing an enterprise system for a large organization is most accurately described as _____. Group of answer choices a low-risk, gradual change somewhat difficult a huge demand on resources doomed to failure

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Implementing an enterprise system for a large organization is most accurately described as a customer relationship management system. Group of answer choices a low-risk, gradual change somewhat difficult a huge demand on resources doomed to failure.

Customer relationship management (CRM) is the strategy companies use to manage their interactions with customers and prospects. CRM helps businesses streamline processes, build customer relationships, increase sales, improve customer service, and increase profitability.

A system management platform like CRM connects all your sales reps and customer data in one place. A CRM consolidates all communications (form-fills, phone calls, emails, texts, meetings), documents, quotes, purchases, and tasks associated with each lead and customer. Your entire team can access these details at the right time to close a sale or provide excellent service.

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England and France produce cheese and bread. England has a competitive advantage in cheese production.
France has a competitive advantage in bread production. If England places a trade embargo on France, what is
likely to happen with cheese and bread production in each country?
O England will produce more bread and France will produce more cheese.
O England will produce more cheese and France will produce more bread.
O England will produce more cheese and France will produce less bread.
O England will produce less bread and France will produce less cheese.

Answers

If an embargo is placed by England on France, England will produce more bread and France will produce more cheese.

What is a comparative advantage?

A country has comparative advantage in production of a good if it produces at a lower opportunity cost when compared with other countries. Opportunity cost is the cost of the next best option forgone when one option is chosen over other options.

A country that has a comparative advantage in the production of a good should produce that good and import the goods for which it does not have a comparative advantage in its production.

If an embargo is placed, countries would not be able to trade so they would have to increase the production of goods they would have otherwise imported.

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If a firm is more concerned about the quick return of its initial investment than it is about the amount of value created, then the firm is most apt to evaluate a capital project using the _____ method of analysis. Group of answer choices

Answers

The firm is most apt to evaluate a capital project using the payback method of analysis. Group of answer choices.

Methods evaluation is taking a look at how a process is performed. whereas job layout shows the structure of the job and names the responsibilities inside the structure, methods evaluation details the obligations and the way to do them. The system concerned with the distinct procedure for doing a particular job.

Financial evaluation has three sub-divisions: vertical analysis, horizontal analysis, and monetary ratios. Horizontal analysis is one of the primary strategies in financial management.

Contemporary strategies for chalcogen compounds evaluation and structural dedication discussed encompass: UV-seen and infrared spectroscopy (UV-Vis and IR), thermo analysis, electrochemistry, magnetic evaluation, chromatography, X-ray techniques (ordinarily XRF, XRD, and EDX), high-decision microscopy (SEM and TEM)

The question is incomplete. Please read below to find the missing content.

If a firm is more concerned about the quick return of its initial investment than it is about the amount of value created, then the firm is most apt to evaluate a capital project using the _____ method of analysis.

A. modified internal rate of return

B. profitability index

C. internal rate of return

D. net present value

E. payback

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Elaine wants to see her family during the Christmas holiday. Joseph wants to see his family, as well, but does not feel as strongly about it. What management style will Joseph use

Answers

Answer: compromise

Explanation:

Design teams for car manufacturers create new vehicle models. What type of team does this exemplify?.

Answers

Design teams for car manufacturers create new vehicle models. The team exemplify their creativity.

What is Creativity?The phenomenon of creativity is the formation of something fresh and worthwhile. An idea, a theory of science, a piece of music, a joke, or a physical object are examples of intangible creations (such as an invention, a printed literary work, or a painting).Psychology, business studies, and cognitive science are the main academic fields with an interest in creativity. The humanities, technology, engineering, philosophy (especially philosophy of science), theology, sociology, linguistics, the arts, economics, and mathematics are other fields where it is present.These fields examine the connections between creativity and general intelligence, personality type, mental and neural processes, mental health, or artificial intelligence.They also examine the potential of education and training to foster creativity, the development of creativity for the benefit of the national economy, and the use of creative resources to enhance teaching and learning.

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Each of the following, except one, is a condition that characterizes a perfectly competitive labor market. Which is the exception

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Each of the following, except one, is a condition that characterizes a perfectly competitive labor market in option B. workers receive wages that are above their marginal revenue product (MRP).

In developing countries, labor markets play a central role in determining economic and social progress since employment status is one of the key determinants of exiting poverty. Ultimately, having a decent, well-paid, and secure job is the most sustainable path to increasing incomes and consumption levels.

That is, in the labor market, employers are willing to buy more hours of labor at lower wages than at higher wages. Although employers, who demand labor, prefer lower wages, workers, who supply that labor, prefer high wages.

Your question is incomplete. Please read below for the missing content.

Each of the following, except one, is a condition that characterizes a perfectly competitive labor market. Which is the exception?

a. Workers appear identical to firms.

b. Workers receive wages that are above their marginal revenue product (MRP).

c. There are no barriers to entering the labor market.

d. There are no barriers to exiting the labor market.

e. There are many buyers of labor in the market.

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Holding the nonprice determinants of demand constant, a change in price would:

Answers

Holding the nonprice determinants of demand constant, a change in price would result in either a decrease in demand or an increase in demand.

An alternate in a nonprice determinant changes the relationship between rate and amount demanded, either increasing or reducing the amount demanded at every rate. on occasion referred to as non-very own-rate determinant. A boom or decrease in the amount demanded of an awesome, service, or resource at each fee.

The demand curve shifts horizontally. A surplus will arise in a market if: the quantity provided at a given rate exceeds the amount demanded at that rate.

Whilst a nonprice determinant of demand modifications calls for curve shifts, there may be a boom or lower in demand. when the rate of great adjustments, we move along the demand curve to a new factor on the curve, and there's a boom or lower in quantity demanded.

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True or false: To purchase a closed-end mutual fund, you would purchase shares directly from the mutual fund company at any time.

Answers

Answer:false

Explanation:

The statement - "To purchase a closed-end mutual fund, you would purchase shares directly from the mutual fund company at any time" is false.

What is mutual fund?

A mutual fund is an investment vehicle that is professionally managed and combines money from numerous individuals to acquire assets.

The name is commonly used in the United States, Canada, and India, whereas similar structures in other parts of the world include the SICAV in Europe and the open-ended investment company in the United Kingdom.

A closed-end fund is a form of mutual fund that raises capital for its initial investments by issuing a limited number of shares in a single initial public offering (IPO).

Its shares can then be purchased and sold on a stock market, but no new shares are generated, and no new money enters the fund.

"To acquire a closed-end mutual fund, you would purchase shares directly from the mutual fund company at any time," is a false statement.

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Sophie Bennett has personally paid a total of $6,000 in medical costs this year, which is the out-of-pocket limit listed in her insurance plan. At this point, there is a provision in her insurance contract that requires her insurance company to pay 100% of her medical costs for the remainder of the year. What provision is this likely to be

Answers

A clause is this likely to be (D) Stop-loss provision.

What is the stop-loss provision?A limitation on the amount of loss experienced by the insured in a certain period without recompense.Stop-loss insurance (sometimes known as excess insurance) is a type of insurance that protects against catastrophic or unforeseeable losses. It is purchased by employers who have elected to self-fund their employee benefit plans but do not want to bear full risk for plan losses.First, based on the employer's history, the stop-loss carrier calculates the average expected monthly claims PEPM. This amount is then multiplied by a percentage ranging from 110 to 150 percent. The computed amount is then multiplied by the monthly enrolment to determine the aggregate deductible.

Therefore, according to the above-given situation of Sophie Bennett, a clause is this likely to be a (D) Stop-loss provision.

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Complete question:

Sophie Bennett has personally paid a total of $5,000 in medical costs this year. At this point, there is a clause in her insurance contract that requires her insurance company to pay 100% of her medical costs for the remainder of the year. What clause is this likely to be?

A) Coordination of benefits

B) Hospital indemnity clause

C) Coinsurance

D) Stop-loss provision

E) Major medical expense provision

The main public policies of technological leading countries are _______________ focused on investment, including investment in human capital, in technology, and in physical plant and equipment.

Answers

The main public policies of technological leading countries are fiscal policies focused on investment, including investment in human capital, in technology, and in physical plant and equipment.

Fiscal policies are that useful tool of government that inluences the taxation and investment on the economy to promote sustainable growth and development and the economy.

Three main kinds of fiscal policy which can be classified are nuetral, expansionary and contractionary in terms of the country redressal.

They are done to cut down tax rate , control expenditures and overall capital investment to increase the growth of GDP.

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Employees who get things done using an organization's financial resources, information, equipment, and workers are?

Answers

Employees who get things done using an organization's financial resources, information, equipment, and workers are managers

An employee is someone who receives compensation to work for an individual or company. Workers do not have to work full-time to be considered employees. You only have to pay for the work from your employer (the payer or company).

"Employee" is a single possessive case and is owned by an individual employee. If you have multiple employees, we call them "employees" and use the genitive plural "employee" to refer to those owned by multiple employees.

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The market price of hamburgers in a college town decreased recently, and the students in an economics class are debating the cause of the price decrease. Some students suggest that the price decreased because several new burger joints have recently opened in the area. Other students attribute the decrease in the price of hamburgers to a recent decrease in college student enrollment.

Answers

The reason for the decreased price is that several new burger joints have recently opened in the area.

If the price of hamburgers will increase, hamburgers will appear greater luxurious, so clients will call for fewer hamburgers at that price. this transformation will only affect the quantity demanded at that price, on no account possible prices of hamburgers.

The supply curve suggests the relationship between the fee of a good and the quantity furnished, with different determinants of supply held regular. consequently, whilst the charge of the good modifications, the result is a movement along the supply curve not a shift of the entire supply curve.

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Which of porter’s five forces was likely the most powerful factor influencing the failure of blackberry?

Answers

Answer is the  threat of substitute products or services.

Rivalry among the existing competitors was not a significant factor in the BlackBerry's downfall because they were not able to produce any form of alternative to the iPhone, and the users switched from the BlackBerry phones to the iPhones. The danger of replacement products is one of the Porter's five factors, and it indicates that there are alternative items that are likely to steal the company's market share. The downfall of the BlackBerry was caused by the  substitute product in the shape of the iPhone.

All of the other allegations are untrue because there were no new entrants and the suppliers threatened because they were unable to upgrade their product.

Therefore, (B) Threat of substitute products or services is the correct answer is the correct answer.

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A cash payment made by a firm to its owners when some of the firm's assets are sold off is called a: regular cash dividend. special dividend. liquidating dividend. share repurchase.

Answers

(a). A cash payment made by a firm to its owners when some of the firm's assets are sold off is called a: Liquidating dividend

What is a dividend?

A dividend is a payment made to shareholders in exchange for their investment in a company. Dividends can be distributed in a variety of ways, including cash payments or additional stock..

More about Liquidating dividend:

A liquidating dividend is a dividend paid by a company during its liquidation process. Liquidation is the process by which a company ceases operations and exits the market. Voluntary or involuntary liquidation (forced). A liquidating dividend is also known as a liquidating distribution or a terminal distribution, as it involves the distribution of semi-liquid and liquid assets among the shareholders of the company. When the operators of a business believe they can no longer sustain operations, they wind down the business and return the assets of the business to shareholders via dividend payments.

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What government program or service would affect you and/or the nation the most if it were suspended as a result of not paying taxes?.

Answers

Treasury Offset Program government program or service would affect you and/or the nation the most if it were suspended as a result of not paying taxes.

What does the Treasury Offset Program entail?

The federal government might owe money to people, companies, states, and other organizations. It's a debt, that. The debt gets overdue if they don't pay it on time (delinquent). The Treasury Offset Program (TOP) withholds funds from a federal payment to the debtor when the debt is passed late in order to assist in collecting the debt. (Offering to withhold funds from payment is known as "offsetting the payment" or "administrative offset").

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What level of management is responsible for originating capital budgeting proposals?

Answers

It is the work of all level of management.

Companies use capital budgeting to analyze large projects and investments, such as new factories or equipment. The technique involves assessing a project's financial inflows and the  outflows to see whether the expected return is within a certain range. Capital budgeting methodologies include discounted cash flow, payback, and throughput studies.

Accountants provide this information, giving ownership the first tool it requires to start preparing the capital budget. Accounting firms often provide predictions of future earnings and the costs of alternative financing solutions to help management make decisions.

Therefore, the answer is all level of management.

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Online content that has been created and posted by unpaid contributors such as customers or fans of a product or service is referred to as:.

Answers

User-generated-Content (UGC): Online content that has been created and posted by unpaid contributors such as customers, or fans of a product or service.

What is User-Generated-Content?

Any form of content that has been produced and made available by contributors—or, a better phrase would be fans—is referred to as "user-generated content." It is the act of users endorsing a brand rather than the brand itself, and it may relate to images, videos, testimonials, tweets, blog entries, and everything in between.

UGC so appears to be another one of those marketing buzzwords, isn't it? It isn't a craze at all, in truth. It had been glowing dazzlingly for some time (well, a while for the fast-paced world of the internet).

The user-generated content has so many benefits that if used effectively it can lead the business to touch the skies.

Benefits of UGC are:Builds reliable customer communitiesCost-effective promotional techniqueThe content is super AuthenticCan help the brands to bring effective changes and cater to the demand builds reliable customer communitiesCost-effective promotional techniqueThe content is super AuthenticCan help the brands to bring effective changes and cater to the demandMakes the brand aware of its products/services shortcomingsMakes the brand aware of its products/services shortcomings

Therefore, Online content that has been created and posted by unpaid contributors such as customers or fans of a product or service is referred to as User-Generated-Content.

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A project budget report is showing our project as spending $35,000 against a budgeted amount of $40,000. Which of the following is true

Answers

From the above information, it is true that the company is running a budget deficit.

What is budgeting?

Budgeting is the process of planning for an allocating resources efficiently and effectively.

A budget deficit is when the expended amount is above the budgeted figure.

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what are some things you want money can buy

Answers

Answer:

I want a new car and a home.

Explanation:

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