Stephanie Purchased an Antique Necklace Six Years Ago for $300

question 3

Multiple Choice

Stephanie purchased an antique necklace six years ago for $300 as an investment.The clasp was repaired at the end of the second year for $150.The repaired necklace has just sold at auction for $850.What is the average compound annual rate of return that was earned by investing in this collectible?

• A)5.40.
• B)10.54.
• C)12.54.
• D)13.00.

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Definitions:

Nonprogrammed Decision

Decision-making that occurs in response to unusual, unpredictable, and unique situations, requiring custom solutions rather than standard operating procedures.

Post-Decisional Justification

The tendency to rationalize a decision after it has been made to reduce cognitive dissonance.

Optimistic Evaluation

The tendency to assess situations, challenges, or opportunities in a positive light, expecting favorable outcomes.

Synergy

The interaction or cooperation of two or more organizations, substances, or agents to produce a combined effect greater than the sum of their separate effects.