Author Question: Asset A was purchased six months ago for 25,000 and has generated 1,500 cash flow during that ... (Read 231 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?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

For a complete list of videos, visit our video library