You Bought a Stock for $80

question 3

Multiple Choice

You bought a stock for $80.00 and sold it after three years for $95.00.While you held the stock it paid $3.00 in dividends.What is the annualized return?

• A) 18.75%
• B) 11.25%
• C) 7.50%
• D) 22.50%
• E) 9.38%

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Definitions:

Marginal Product

The additional output produced as a result of employing one more unit of a particular input, assuming all other inputs remain constant.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a business in the production of goods or services.

Input Price

The cost of resources or raw materials used in the production of goods and services.

Productivity

The measure of how efficiently inputs are converted into outputs in any production process.