The Past Five Monthly Returns for K and Company Are

question 34

Multiple Choice

The past five monthly returns for K and Company are 2.28 percent, 2.64 percent, −1.05 percent, 4.25 percent, and 9.25 percent. What is the average monthly return?

• A) 1.45 percent
• B) 1.62 percent
• C) 3.47 percent
• D) 3.89 percent

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Definitions:

Call Option

An agreement that grants the purchaser the option, not the compulsion, to acquire an asset at a predetermined price during a defined timeframe.

Exercise Price

The specified price at which the holder of an option can buy (call option) or sell (put option) the underlying security or commodity.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, typically represented by government bonds.

Market Value

The current price at which an asset or service can be bought or sold in a market.