If the Price of a Financial Asset Is $100 at the Beginning

question 57

Multiple Choice

If the price of a financial asset is $100 at the beginning of the period, pays a $5 dividend, and earns a 10 percent return over the period, what is the price at the end of the period?

• A)$110
• B)$105
• C)$115
• D)$120

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Definitions:

Arc

A continuous portion of a circle or other curved line, or in geological terms, a curved series of volcanic islands that form above a subducting plate.

Tectonic Terrane

A fault-bounded body of rock that has a different geologic history than adjacent regions.

Horst and Graben

Geological structures where a horst is a raised block of the earth's crust bordered by faults, and a graben is a lowered block of the earth's crust bordered by parallel faults.

Forearc Basin

A sedimentary basin that lies between the volcanic arc and the trench in a convergent plate boundary.