What Would Be the Annual Compound Return on a Stock

question 70

Multiple Choice

What would be the annual compound return on a stock purchased at $20 per share, held for 5 years, and sold for $32.22? Ignore brokerage commissions and tax implications and assume the stock paid no dividends during the holding period. Round to the nearest whole percent if necessary.

• A) 3%
• B) 10%
• C) 15%
• D) 16%

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Definitions:

Forebrain

The anterior part of the brain, including the cerebrum and structures related to it, responsible for the majority of higher cognitive functions.

Cognitive Functions

Mental processes that involve the acquisition of knowledge, manipulation of information, and reasoning, including perception, memory, and decision-making.

Lashley

Refers to Karl Spencer Lashley, an American psychologist and behaviorist well-known for his research on learning and brain function.

Cerebral Cortex

The outer layer of the brain's cerebral hemispheres, involved in complex brain functions like thought, memory, and consciousness.