The Economic Rate of Return on an Asset Is Defined

question 5

Multiple Choice

The economic rate of return on an asset is defined as

• A)[(C₁ + PV₁ - PV₀)]/(PV₀).
• B)[(C₁ - (PV₁ - PV₀)]/(PV₀).
• C)[(C₁ + PV₁)]/(PV₀).
• D)[(C₁ + PV₀)]/(PV₁).

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