A Retailer Has Some Toe Rings That Cost Him $5

question 170

Multiple Choice

A retailer has some toe rings that cost him $5 each. He wants to sell them at a profit of 40% of the cost. What should be the selling price of the toe rings?

• A) $10.00
• B) $7.00
• C) $2.00
• D) $9.00
• E) none of these

---

Definitions:

Risk-Free Rate

The estimated yield from an investment that carries no risk, often illustrated by government bond yields.

High Water Mark

The previous value of a portfolio that must be reattained before a hedge fund can charge incentive fees.

Incentive Fees

Fees paid to a fund manager based on the performance of the fund, designed to align the interests of the manager with those of the investors.

Portfolio Value

The total worth of all the financial assets held in an investment portfolio.