Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If P_(0) is the initial price of the security, P_(1) is the price after you hold it for a year, and x represents a direct
If
P_(0)
is the initial price of the security,
P_(1)
is the price after you hold it for a year, and
x
represents a direct payment, an asset's rate of return is equal to:\ rate of return
=(P_(1)-P_(0))
\ rate of return
=(P_(1)-P_(0))+x
\ rate of return
=(P_(1)-P_(0))/(P_(0))+xP_(0)
\ rate of return
=(P_(1)-P_(0))/(P_(0))+x
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started