11. A share of stock increased 2% in a week. If it could continue to grow at the same rate for a year, what would the ef...
11. A share of stock increased 2% in a week. If it could continue to grow at the same rate for a year, what
would the effective annual rate of return be?
A. 52% B. 104% C. 180% D. 280% E. 300%
Homework Answers
effective annual rate = (1+ periodic rate)^number of compounds - 1
= (1+2%)^52 -1
= 180%
hence choose C)
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11. A share of stock increased 2% in a week. If it could continue to grow at the same rate for a year, what would the ef...
share of stock increased 2% in a week. If it could continue to grow at the...
share of stock increased 2% in a week. If it could continue to grow at the same rate for a year, what would the effective annual rate of return be? A. 52% B. 104% C. 180% D. 280% E. 300% Please show math and formulas used. Thanks
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