If an Investor Buys and Holds a Stock for Four

question 26

Multiple Choice

If an investor buys and holds a stock for four years, earning 15% the first year; -8% for the second; 21% for the third; and 11% for the last year, what was the annual arithmetic return?

• A) 9.00%
• B) 9.75%
• C) 10.00%
• D) 11.25%

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Definitions:

SWOT Analysis

A strategic planning technique used to identify a company's Strengths, Weaknesses, Opportunities, and Threats.

Marketing Program

A comprehensive plan that outlines marketing strategies, tactics, and actions to achieve business objectives.

Customer Value Proposition

A business or marketing statement that describes why a customer should buy a product or use a service, highlighting the distinct value.

Points of Difference

Unique attributes or benefits that set a product, service, or brand apart from its competitors in the eyes of the target market.