Speedy Has Net Income of $18,955,and Assets at the Beginning

question 102

Multiple Choice

Speedy has net income of $18,955,and assets at the beginning of the year of $200,000.Assets at the end of the year total $246,000.Compute its return on assets.

• A)7.7%.
• B)8.5%.
• C)9.5%.
• D)11.8%.
• E)13.0%.

---

Definitions:

American Options

Options contracts that allow the holder to exercise the option at any time up to and including the expiration date.

Expiration Date

The date on which an option, futures contract, or insurance policy loses its validity or effect.

Exchange Rate

A financial metric used to determine how much one currency is worth in terms of another for trade and financial transactions.

Unbiased Forward Rates

Future rates of interest inferred from current bond prices, assuming no arbitrage opportunities.