AmazonCom Stock Prices Gave a Realized Return of 5%, -5

question 30

Multiple Choice

Amazon.com stock prices gave a realized return of 5%, -5%, 11%, and -11% over four successive quarters. What is the annual realized return for Amazon.com for the year?

• A) -1.46%
• B) 2.91%
• C) 0.00%
• D) 1.46%

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Definitions:

Annual Interest Rate

The percentage that is applied to a sum of money, including loans or savings, indicating the amount earned or paid over a year.

Interest Rates

The cost of borrowing money or the return for investing money, usually expressed as a percentage of the principal amount.

Future Dollars

Currency value projected at a future date, often used in the context of inflation or investment growth.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of an investment.