Compute the Total and Annual Returns on the Described Investment $X Y Z$

question 44

Multiple Choice

Compute the total and annual returns on the described investment.
-Five years after buying 200 shares of $X Y Z$ stock for $\$ 30$ per share, you sell the stock for $\$ 10,000$ .

• A) Total Return: \(60.00 \%\)
• Annual Return: \(9.68 \%\)
• B) Total Return: 70.00\%
• Annual Return: 11.29\%
• C) Total Return: 56.67\%
• Annual Return: 9.14\%
• D) Total Return: \(66.67 \%\)
• Annual Return: 10.76\%

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Definitions:

Détente

A period of improved relations between two countries that were previously in conflict or tension.

Soviet Union

A federal socialist state in Eastern Europe and Asia, existing from 1922 to 1991, and was a major player in global affairs.

Foreign Policy

A government's strategy in dealing with other nations, including diplomacy, military action, and other interactions.

1972 Summit

A significant series of meetings during the Cold War, particularly referring to the historic Summit Series ice hockey competition between Canada and the Soviet Union.