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Question 4: An investor bought a share at Tshs. 1000 and after four years she sold the stock at Tshs. 1500. With no dividend paid
Question 4: An investor bought a share at Tshs. 1000 and after four years she sold the stock at Tshs. 1500. With no dividend paid by the stock her returns were 50% over a period of four years. She therefore concluded that her annual returns were 12.5%. Is she right in her conclusion? Question 9: You have the opportunity to purchase a contract that promises to pay the owner of the contract $10,000 per year forever. If your required annual rate of return is 16%, would you purchase this contract if the offering price were $70,000? Question 9: You have the opportunity to purchase a contract that promises to pay the owner of the contract $10,000 per year forever. If your required annual rate of return is 16%, would you purchase this contract if the offering price were $70,000? Question 9: You have the opportunity to purchase a contract that promises to pay the owner of the contract $10,000 per year forever. If your required annual rate of return is 16%, would you purchase this contract if the offering price were $70,000
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