A Portfolio Manager Generates a 5% Return in 2008,a 12

question 119

Multiple Choice

A portfolio manager generates a 5% return in 2008,a 12% return in 2009,a negative 6% return in 2010,and a return of 2% (non-annualized) in the first quarter of 2011.The annualized return for the entire period is closest to:

• A)3.05%
• B)3.25%
• C)3.50%
• D)3.77%

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Definitions:

Merger

Two or more firms combining to form a single firm.

Conventional Merger

The combination of two or more companies into a single entity through the acquisition or pooling of interests.

Horizontal

A term often used to describe expansion or growth across a single level or area, rather than vertically or hierarchically.

Rule of Reason

Mere size is no offense. Market conduct rather than market share should determine whether antitrust laws have been violated.