a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter yo

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 5SCQ: Investors sometimes fear that a high-risk investment is especially likely to have low returns. Is...
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J
Assume that at the beginning of the year, you purchase an investment for $14,200 that pays $95 annual income. Also assume
the investment's value has increased to $15,800 by the end of the year.
a. What is the rate of return for this investment?
Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.
Rate of return
b. Is the rate of return a positive or a negative number?
O Positive
O Negative
Transcribed Image Text:J Assume that at the beginning of the year, you purchase an investment for $14,200 that pays $95 annual income. Also assume the investment's value has increased to $15,800 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return b. Is the rate of return a positive or a negative number? O Positive O Negative
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