Question
Linda Ramirez, CFO of Randolph Corporation is analyzing two investments: Investment A and Investment B. Past year, the investment A had a market value of
Linda Ramirez, CFO of Randolph Corporation is analyzing two investments: Investment A and Investment B. Past year, the investment A had a market value of $125,000, and Investment B of $$175,000. During the year Investment A generated actual income of $4,500 and Investment B of $3,000. Today, the actual market values for the investments are, respectively, for A, $130,000 and for B, $160,000.Linda Ramirez, CFO of Randolph Corporation is analyzing two investments: Investment A and Investment B. Past year, the investment A had a market value of $125,000, and Investment B of $$175,000. During the year Investment A generated actual income of $4,500 and Investment B of $3,000. Today, the actual market values for the investments are, respectively, for A, $130,000 and for B, $160,000.
Calculate the expected rate of return on investments A and B for the year.
Based on your results, Which Investment performed better? Why?
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The Laymans Guide To Managing Your Investments
Authors: Thomas Dunleavy
1st Edition
979-8763592214
