JT Purchases 1,000 Shares of Stock at $2

question 39

Multiple Choice

JT purchases 1,000 shares of stock at $2.48 per share in January 2006. He sells the 1,000 shares in January 2010 for $5.50 per share. What is his internal rate of return?

• A) 22.03%
• B) 2.03%
• C) 3.22%
• D) 2.33%

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Definitions:

Yearly Rate

The amount, level, or number of something calculated or represented over a period of one year.

Null Hypothesis

A hypothesis in statistical analysis that suggests no significant difference or effect exists among the variables being studied.

Null Hypothesis

A hypothesis that assumes no significant difference or effect, set as a default against which alternative hypotheses are tested.

Mean Sales

The average revenue generated from sales activities over a specific period, calculated by summing total sales and dividing by the number of sales.