Calculate the Arithmetic Return of an Investment with fiVe Year

question 29

Multiple Choice

Calculate the arithmetic return of an investment with five year returns of 10%, 6%, 4%, 2% and (10%) .

• A) 7.32%
• B) 8.32%
• C) 9.32%
• D) 10.32%
• E) 11.32%

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Definitions:

Negotiable Note

A financial instrument that promises payment of a specific amount of money, either on demand or at a future date, and is transferable by endorsement.

Notice Provision

A clause in a contract that outlines the methods and timing required for giving formal notifications or communications between parties.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee’s name on it.

Negotiate

The process of discussing something with another party to reach a mutually agreeable decision or deal.