You Owned a Stock for 2 Months and Earned an Annualized

question 105

Multiple Choice

You owned a stock for 2 months and earned an annualized return of 13.28%. What was the rate of return for the 2-month period?

• A) 2.10%
• B) 1.12%
• C) 2.59%
• D) 1.71%
• E) 2.87%

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Definitions:

Inflation Rate

The increase percentage in the overall level of prices for goods and services in a country's economy over a period of time.

CPI

This index tracks the overall price changes of a mix of consumer products and services like healthcare, transportation, and food by calculating their weighted average price.

Inflation Rate

A measure reflecting how much prices of goods and services have increased in a given period, reducing the purchasing power of money.

Market Basket

A set combination of goods and services used as a consistent measure to track the cost of living and inflation through price changes over time.