What Is Your Annual Rate of Return If You Invest

question 63

Multiple Choice

What is your annual rate of return if you invest $1,000 in a stock on January 1,2017 and it increases in value by $50 by January 2,2018,and pays four dividends of $12.50?

• A)0%
• B)5%
• C)10%
• D)15%

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Definitions:

Factors Efficiently

refers to the optimal allocation and utilization of resources in production to maximize output without wasting resources.

Opportunity Cost

Opportunity cost is the benefit lost when choosing one alternative over another, representing the value of the next best option foregone.

Consumer Goods

Products that are purchased by individuals or households for personal use or consumption.

Production Possibility Frontier

A curve depicting the maximum attainable combinations of two products that may be produced with available resources and current technology.