Mark Would Like to Purchase a Stock Priced at $70

question 16

Multiple Choice

Mark would like to purchase a stock priced at $70. Mark thinks he can sell the stock for $100 after one year. If Mark does not borrow any money from his brokerage firm, what is the estimatedreturn on the stock?

• A) 30.00 percent
• B) -42.86 percent
• C) -30.00 percent
• D) 42.86 percent
• E) none of the above

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Definitions:

Equity Index

A statistical measure that represents the value of a set of stocks, showing changes in the overall performance of a stock market or a segment of the stock market.

Portfolio Manager

A professional responsible for making investment decisions and overseeing a portfolio of assets to achieve specific investment objectives.

Active Asset Allocation

An investment strategy that actively adjusts the mix of asset classes in a portfolio based on market conditions and investment goals.

Maximizing Liquidity

The strategic management of assets or investments in order to ensure they can be quickly converted to cash without significant loss of value.