Sara Would Like to Evaluate the Performance of Her Portfolio

question 51

Multiple Choice

Sara would like to evaluate the performance of her portfolio over the past 10 years. What compound annual rate of return has she achieved is she invested $12,000 10 years ago and now has $25,000?

• A) Between 8% and 9%
• B) Between 10% and 11%
• C) Between 9% and 10%
• D) Between 7% and 8%

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Definitions:

MRP

Marginal Revenue Product; the additional revenue generated from employing one more unit of a resource, commonly applied in economics.

Marginal Product

The additional output resulting from the use of one more unit of a production input, holding other inputs constant.

Variable Input

A variable input is one whose amount can be adjusted in the short term to either raise or lower output levels.

MRP

Acronym for Marginal Revenue Product, which measures the addition to total revenue resulting from the sale of the output produced by one more unit of a variable input.