You purchased 100 shares of ABC six months ago at a price of $24 per share. Now you sell all of them at $25.5 per share. You did not receive any dividends. What was your effective annualized rate of return on this investment?

12.89%

12.50%

6.25%

Facing resource constraint means

An investor has to invest in long-term securities only.

An investor pays no income taxes.

An investor has insufficient funds to purchase a security.

Jimmy has $50,000 and he need to decide how much to spend on shares issued by Microsoft, Facebook, Citi, Home Depot, and Adobe. This is a decision on

Market timing

Investment management

Security selection