Exhibit 1-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 39

Multiple Choice

Exhibit 1-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
The common stock of XMen had the following historic prices. $$\begin{array} { l l } \text { Time } & \text { Price of XMen } \\\hline 3 / 01 / 2004 & 50.00 \\3 / 01 / 2005 & 47.00 \\3 / 01 / 2006 & 76.00 \\3 / 01 / 2007 & 80.00 \\3 / 01 / 2008 & 85.00 \\3 / 01 / 2009 & 90.00\end{array}$$
-Refer to Exhibit 1-3. What was your holding period return for the time period 3/1/2004 to 3/1/2009?

• A) 0.1247
• B) 1.8
• C) 0.1462
• D) 0.40
• E) 0.25

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Definitions:

Fixed Exchange Rates

A system where the value of a currency is pegged to another currency, a basket of currencies, or a commodity such as gold, and does not fluctuate in the foreign exchange market.

Gold Standard

A monetary system in which the standard unit of currency is based on a fixed quantity of gold, ensuring stability and trust in currency value.

Balance of Trade Deficit

A Balance of Trade Deficit occurs when a country's imports of goods and services exceed its exports, indicating that more money is flowing out of the country to buy foreign goods than is coming in from the sale of domestic goods.

United States

A country in North America consisting of 50 states and a federal district, known for its significant economic and political influence globally.