You Purchased a Stock Eight Months Ago for $36 a Share.Today,you

question 53

Multiple Choice

You purchased a stock eight months ago for $36 a share.Today,you sold that stock for $41.50 a share.The stock pays no dividends.What was your annualized rate of return?

• A) 23.32 percent
• B) 24.77 percent
• C) 25.70 percent
• D) 26.03 percent
• E) 27.67 percent

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future decisions but often do.

Alternatives

Different options or choices available in any given situation or decision-making process.

Longitudinal Studies

Research methods that involve observations of the same subjects over a period, often years or decades, to determine long-term effects or trends.

Passionate

Exhibiting or characterized by intense feelings of enthusiasm or affection.