If an Investor's Cost of Investment Is $500,000 and Net

question 25

Multiple Choice

If an investor's cost of investment is $500,000 and net profit is $50,000 that year, the return on investment is:

• A) 10%
• B) 1%
• C) 100%
• D) 5%

Understand the role of vigilant investors in the economy.

Understand the concept of constant net returns in stock value determination.

Learn the method of discounting future income to present value.

Understand the relationship between interest rates and the present value of future payments.

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Definitions:

Mutually Accountable

The concept where every member of a team or group is responsible to each other for their actions, decisions, and performance.

Developmental Sequence

The order in which certain skills or abilities are typically acquired or developmental milestones are reached.

Performing

A stage in team development where the group operates efficiently towards achieving its goals.

Adjourning

The final stage in Tuckman's group development model where the team completes its task and dissolves.