Compute the Total and Annual Returns on the Described Investment $49.96 \%$

question 251

Multiple Choice

Compute the total and annual returns on the described investment.
-Five years after paying $15,487 for shares in a new company, you sell the shares for $7342.

• A) Total Return: -42.07\%
• Annual Return: -11.09\%
• B) Total Return: - \(49.96 \%\)
• Annual Return: -13.17\%
• C) Total Return: \(- 52.59 \%\)
• Annual Return: -13.87\%
• D) Total Return: -55.22\%
• Annual Return: \(- 14.56 \%\)

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Definitions:

Premarital Contract

An agreement between individuals planning to marry that outlines the management of their assets and financial matters upon marriage.

Informal Contract

A contract that requires no formalities. Also called simple contract.

Formal Contract

A contract that must have a special form or must be created in a specific manner.

Simple Contract

A contract that is not a formal contract. Also called an informal contract.