Question
1-You bought one bitcoin in January 2018 for $15400 and sold it two years later for $11000. What was your holding period return and your
1-You bought one bitcoin in January 2018 for $15400 and sold it two years later for $11000. What was your holding period return and your annualized rate of return?
-28.6% holding period return and -14.3% annualized return
-14.3% holding period return and -28.6% annualized return
-40.0% holding period return and -20.0% annualized return
-28.6% holding period return and -15.5% annualized return
2-Ruth bought a painting 35 years ago for $2900 and its currently worth $5900. She tripled her money on this investment; however, what is her annualized return on this investment?
2.05%
0.10%
2.40%
3.65%
3-Crane purchased $1200 of a mutual fund with a front-end load of 5%. How much did he actually invest?
$1200
$1080
$1195
$1140
4-What is your annual return on investment for a rental property with the following income and expenses?
Rent: | $850 | per month | |
Expenses: | $3700 | ||
Mortgage interest: | $8000 | ||
Equity investment: | $26000 | ||
Original mortgage: | $101000 | ||
Market value: | $111340 |
134%
34%
10.1%
37%
5-Rodney purchased a call option on Wildbear Industries stock with a $100 exercise price, for $2 per share, when the actual price of the stock is $97. If the price goes up to $103, what is his rate of return on investment?
6 percent
50 percent
100 percent
3 percent
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