You Bought Stock in 2010 for $100 and You Sold

question 71

Multiple Choice

You bought stock in 2010 for $100 and you sold it in 2012 for $200.You used a broker to sell the stock for you,and he charged you $20.This transaction contributed ________ to gross domestic product (GDP) .

• A) $200
• B) $20
• C) $220
• D) $100
• E) $120

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Definitions:

Required Rate of Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular project or investment.

Return on Investment

A measure used to evaluate the efficiency of an investment, calculated as the return (profit) of an investment divided by the cost of the investment.

Division

A section or branch of a company that operates semi-autonomously, focusing on a particular product line, market segment, or geographical area.

Managerial Performance

Evaluation of the effectiveness with which managers achieve organizational goals and utilize resources efficiently and effectively.