If P 0 = 100 Is the Initial Price of the Security and the Security

question 1

Multiple Choice

If P 0
= 100 is the initial price of the security and P
1
= 103 is the price after you hold it for a
Year, the asset's rate of return is equal to:

• A)3%.
• B)7%.
• C)13%.
• D)103%.

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Definitions:

Demand (D)

In economic terms, the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Substitute

A good or service that can be used in place of another, allowing consumers to switch between them based on price, preference, or availability.

Equilibrium

A situation where the supply and demand in the market are equal, leading to stable prices.

Margarine

A spread used as a substitute for butter, made from vegetable oils or animal fats.