Katie Jones Started Her Career with an Annual Salary of $30,000

question 33

Multiple Choice

Katie Jones started her career with an annual salary of $30,000 in 2006. Five years later, in 2011, her salary had increased to $55,000 a year. If the values of the CPI (with a base of 1982−1984) for 2006 and 2011 are 201.6 and 224.9, respectively, compute the increase in Katie's real income.

• A) 64.34%
• B) 83.33%
• C) 105.31%
• D) 164.34%

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Definitions:

Specific Risk

Risk affecting a narrow segment of the market, often associated with individual companies or industries, distinct from broad market risk.

Beta

In finance, a measure of a stock's volatility relative to the overall market.

Stock Price

Stock price is the current price at which a share of a company is trading on the stock market.

Earnings Potential

The maximum amount of money an individual, asset, or company could potentially earn.