Author Question: Asset A was purchased six months ago for 25,000 and has generated 1,500 cash flow during that ... (Read 212 times)

BrownTown3

  • Hero Member
  • *****
  • Posts: 564
Asset A was purchased six months ago for 25,000 and has generated 1,500 cash flow during that period. What is the asset's rate of return if it can be sold for 26,750 today?
 
  What will be an ideal response?

Question 2

The range of an asset's risk is found by subtracting the worst outcome from the best outcome.
 
  Indicate whether the statement is true or false



otokexnaru

  • Sr. Member
  • ****
  • Posts: 314
Answer to Question 1

Realized return = = 13
Annual rate of return = 13  2 = 26

Answer to Question 2

TRUE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

For a complete list of videos, visit our video library