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1. Holding Period Return An art collector buys a painting at an initial cost of $200,000 A year later he sells the painting for $215,400.

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1. Holding Period Return An art collector buys a painting at an initial cost of $200,000 A year later he sells the painting for $215,400. What rate of return does he achieve? C. 8.8% D. 9.9% 2. Holding Period Return Sarah bought a stock at a price of $23.50. After she owned the stock for 3 months she received a quarterly dividend of $1.00. She sold the stock for $26.00 immediately thereafter. What was her quarterly rate of return? A. 11.89% B. 13.41% C. 15.83% D. 14.89% 3. Holding Period Return The assets of Potential Corp. grew from 2.3 to 3.3 million dollars in just nine months. What return was earned over the nine month period? What was the monthly return assuming monthly compounding? What was the APR? What was the EAR? 9-mo return Monthl EAR B. C. D. 48.12% 48.12% 43.48% 43.48% 51 .63% 55.31% 49.11% 55.31% 61.83% 65. 7490 61 .83% 65.74% 4. Geometric Average Find the arithmetic average and the geometric average of the following returns: 8%,-13%, 17% Arithmetic Geometric A. 4% B. 3% ?. 4% D. 3% 4.0% 4.0% 3.2% 4.290

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