Consider the Adjusted Closing Prices for MA Stock What

question 70

Multiple Choice

Consider the adjusted closing prices for MA Stock What is the holding period return for MA?

• A) 1.53%
• B) 2.35%
• C) -1.20%
• D) 3.25%

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Definitions:

Perpetuity

An infinite series of equal payments at equal intervals of time.

Present Value

The present-day value of a sum of money to be received in the future or a series of future cash flows, based on a certain return rate.

Cash Flow

A financial measurement that shows the net amount of cash and cash-equivalents being transferred into and out of a business over a specified period.

Annuity

A finite series of equal payments at equal intervals of time. In an ordinary annuity the payments occur at the ends of the time periods. In an annuity due, they occur at the beginnings.