7 Mutual funds and individual stocks sometimes have graphs like the one shown below. AMZN (NASDAQ) February 12, 2012-February 12, 2013 299.31 272.39 24497 21755 1313 10271 $191.59 Aug 2012 Source: Microsoft Finance February 12, 2013. Markel data by Morningstar. +5.2012 OF 2012 $284.72 $257.21 a. How would you describe the pattern of change in the price of one share of Amazon.com stock over the one-year period shown? b. Estimate the equivalent simple annual interest rate earned on a share of Amazon stock purchased on February 12, 2012. c. Suppose you had purchased 100 shares of Amazon stock on February 12, 2012 and sold it at the highest value of the stock during the year that followed. What equivalent simple annual interest rate would you have earned? What would be the profit on your investment? S
7 Mutual funds and individual stocks sometimes have graphs like the one shown below. AMZN (NASDAQ) February 12, 2012-February 12, 2013 299.31 272.39 24497 21755 1313 10271 $191.59 Aug 2012 Source: Microsoft Finance February 12, 2013. Markel data by Morningstar. +5.2012 OF 2012 $284.72 $257.21 a. How would you describe the pattern of change in the price of one share of Amazon.com stock over the one-year period shown? b. Estimate the equivalent simple annual interest rate earned on a share of Amazon stock purchased on February 12, 2012. c. Suppose you had purchased 100 shares of Amazon stock on February 12, 2012 and sold it at the highest value of the stock during the year that followed. What equivalent simple annual interest rate would you have earned? What would be the profit on your investment? S
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:.
7 Mutual funds and individual stocks sometimes have graphs like the one
shown below.
AMZN (NASDAQ) February 12, 2012-February 12, 2013
299.81
272.39
24497
21755
10271
$191.59
+2012
OF 2012
Source: Microsoft Finance February 12, 2013. Markel data by Morningstar.
$284.72
$257.21
a. How would you describe the pattern of change in the price of one share of
Amazon.com stock over the one-year period shown?
b. Estimate the equivalent simple annual interest rate earned on a share of
Amazon stock purchased on February 12, 2012.
c. Suppose you had purchased 100 shares of Amazon stock on February 12,
2012 and sold it at the highest value of the stock during the year that
followed. What equivalent simple annual interest rate would you have
earned? What would be the profit on your investment?
€
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