The Total Rate of Return on an Investment Over a Given

question 113

Multiple Choice

The total rate of return on an investment over a given period of time is calculated by ________.

• A) dividing the asset's cash distributions during the period, plus change in value, by its beginning-of period investment value.
• B) dividing the asset's cash distributions during the period, plus change in value, by its ending-of period investment value.
• C) dividing the asset's cash distributions during the period, minus change in value, by its ending-of period investment value.
• D) dividing the asset's cash distributions during the period, minus change in value, by its beginning-of period investment value.

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Definitions:

Market Demand

The total volume of goods or services that consumers in a specific market are willing and able to purchase at different price levels.

Market Equilibrium

A state in which market supply and demand balance each other, and, as a result, prices become stable.

Competitive Industry

A sector characterized by many participants striving to offer better products or services than their rivals.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.