AmazonCom Stock Prices Gave a Realized Return of 5%,-5%,10%,and -10

question 51

Multiple Choice

Amazon.com stock prices gave a realized return of 5%,-5%,10%,and -10% over four successive quarters.What is the annual realized return for Amazon.com for the year?

• A)-1.25%
• B)2.50%
• C)0.00%
• D)1.25%

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Definitions:

Diminishing Returns

A rule which posits that when investment in a specific sector grows, the profit rate from that investment will not continue to rise past a certain threshold if all other factors are kept unchanged.

AVC

Average Variable Cost is the total variable cost per unit of output.

ATC

Average Total Cost; the per-unit cost of production, calculated by dividing the total cost by the quantity of output produced.

Marginal Output

The additional output that results from increasing the production input by one unit.