An Investor Bought 1,000 Shares of Citigroup in January 2009

question 91

Multiple Choice

An investor bought 1,000 shares of Citigroup in January 2009 for $3.55 a share. She sold all of her shares in December 2009 for $3.31 a share. The inflation rate for 2009 was −0.35%. Which of the following is the investor's real rate of return?

• A) −6.43%
• B) −6.76%
• C) −5.12%
• D) 6.43%

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Definitions:

Period Costs

Expenses that are not tied directly to the production process and are expensed in the period they are incurred, such as selling, general, and administrative expenses.