Determine the real rate of return on investment, Accounting Basics

Assignment Help:

1) A) Suppose Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $315,000. Assume the value of the CPI at the date of Jean's purchase was 180 and rose by the sale date one year later to 190 while the value of the GDP Deflator was 120 at the time of her purchase and rose to 125 by the date she sold her shares. What was Jean's real rate of return on this investment?

B) Explain why you used either the CPI data or the GDPD data in your answer to part A. 


Related Discussions:- Determine the real rate of return on investment

Treasurer, Treasurer: He is the custodian arid manager of each cash and ne...

Treasurer: He is the custodian arid manager of each cash and near-cash resources of the firm. The treasurer arranges credit reviews and sets policy for collecting receivables as d

FNSACC501 – Provide financial and business performance infor, Part 1: Stude...

Part 1: Students should consult with appropriate personnel in order to undertake an assessment of the client’s financial needs. Students must undertake an interview / consultation

Weakness in internal control of procedure for purchase, You have been engag...

You have been engaged internal auditor by the management of Alden proprietary limited to review its internal control over the purchases, receipt, storage and issue of raw material.

LAW OF PERSONS, discuss the features of unincoporated associations

discuss the features of unincoporated associations

Journal, transactions can be even directly entered to the ledger elaborate ...

transactions can be even directly entered to the ledger elaborate and explain why journal is necessary

Difference between debit and credit, Difference between Debit and  Credit ...

Difference between Debit and  Credit Debit- used to record employer's FICA taxes, state unemployment taxes and federal unemployment taxes incurred during an accounting period

Encryption, At the reception it is decrypted and actual data is obtained. ...

At the reception it is decrypted and actual data is obtained. Explain the different methods of encryption technique

Question, What is the implication of applying accounting concepts wrongly

What is the implication of applying accounting concepts wrongly

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd