The specific stock SPX:IND, which is an abbreviation for the S&P 500 stock is like a collection of 500 companies’ stocks combined. It is one of the most popular stocks to buy or sell, in fact you might see it scrolling on the bottom of the screen during a news broadcast on television. As of when this project was written, the 1 Year Return was at +24.67%, which is quite high. The 1 year return refers to the percentage of the stock’s increase or decrease based on the price of the stock calculated exactly 1 year ago. So if someone was to invest $1000.00 into that stock exactly one year ago, then a 24.67% year to date return means that your money would have increased by $246.70. Alright, now let’s use this example and test the equations we have above. In=ir(1+r)^(n-1) Sn=-i(1 - (1+r)^n)

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
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The specific stock SPX:IND, which is an abbreviation for the S&P 500 stock is like a collection of 500
companies’ stocks combined. It is one of the most popular stocks to buy or sell, in fact you might see it
scrolling on the bottom of the screen during a news broadcast on television. As of when this project was
written, the 1 Year Return was at +24.67%, which is quite high. The 1 year return refers to the percentage
of the stock’s increase or decrease based on the price of the stock calculated exactly 1 year ago. So if
someone was to invest $1000.00 into that stock exactly one year ago, then a 24.67% year to date return
means that your money would have increased by $246.70. Alright, now let’s use this example and test
the equations we have above.

In=ir(1+r)^(n-1)

Sn=-i(1 - (1+r)^n)

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