The Returns for IMB Over the Last 3 Years Are

question 17

Multiple Choice

The returns for IMB over the last 3 years are given below.Assuming no dividends were paid,what was the 3-year holding period return? Given the following information:
Year 1 return = 10%,Year 2 return = 15%,Year 3 return = 12%.

• A)12.3%
• B)13.9%
• C)15.8%
• D)41.7%
• E)46.5%

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Definitions:

Good

A material item or service that can be bought, sold, or traded to satisfy a want or need.

Opportunity Cost

The value of the next best alternative forgone as the result of making a decision.

Optimum

The most favorable condition or level at which the best possible outcome or maximum efficiency is achieved.

Sweater

A knitted garment typically covering the upper body, designed for warmth or fashion.