The Arithmetic Average Daily Return for Dopey Inc

question 32

Multiple Choice

The arithmetic average daily return for Dopey Inc.was 2.0% for this past week.Dopey's stock was trading at $23.70 when the market closed on Friday.The daily returns for Monday, Tuesday, Thursday, and Friday are 4.8%, 5.6%, -4.0%, and 12.2%, respectively.What was Dopey's opening price on Monday?

• A)$21.47
• B)$21.55
• C)$21.75
• D)$22.80

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Definitions:

Floating Interest

An interest rate that changes over the life of a loan or mortgage, based on the current market conditions or an index.

Solvency

The ability of an entity to meet its long-term debts and financial obligations.

Times Interest Earned Ratio

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Inventory Turnover

A measure of how quickly a company sells its inventory within a given period, indicating the efficiency in managing and selling products.