Bobby Invested $1,000 for Five Years

question 102

Multiple Choice

Bobby invested $1,000 for five years. For the first two years he earned 9% compounded monthly. For the next two years he earned 11% compounded quarterly. For the final year he earned 14% compounded semi-annually. What was his effective rate of return over the five years?

• A) 14.49%
• B) 11.22%
• C) 10.80%
• D) 13.38%
• E) 13.99%

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Definitions:

Personality Characteristics

The distinctive traits and behaviors that make up an individual's character, influencing how they interact with the world and others.

Segmentation

The process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.

Distinct Customer Groups

Segments of the market differentiated by specific needs, characteristics, or behaviors, requiring tailored marketing strategies.

GE/McKinsey Portfolio

A strategic tool used for managing a business's portfolio of products or business units, plotting them on a grid to decide where to invest or disinvest.