QUESTION 26 (5 points) Asset A was purchased six months ago for $15,000 and has generaced...

Question

Question

business finance

Answer 1

Answer #1

Change in price=Selling price-Buy price=16750-15000=1750
Cash flow=1500
Total return=1500+1750=3250

Asset's rate of return=3250/Buy price
=3250/15000
=0.216666667 or 21.67% (Rounded to two decimal places)

Answer 2

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