Respuesta :
The correct option is D. 0%.
The annual realized return for Amazon.com is 0%.
What is annual realized return?
An average annual total return would be the geometric average sum of money generated by an investment over a specific time period.
Some key features of annual realised/total returns are-
- An annualized total yield provides merely a glimpse of an investment's performance and gives no indication of volatility or price variations to investors.
- An annualized return formula is a geometric average that shows what an investment would receive if the annual return were compounded over time.
- An annualized rate of return is calculated only using two variables: total returns for a specific period and the time the transaction was kept.
Now, according to the question;
The realized returns for 4 quarters are;
15%, 15%, -15%, and-15%
Thus,
Annual realized return = (sum of realized return of 4 quarters)/ 4
= (15% + 15% - 15% - 15%)/4
Annual realized return = 0%
Therefore, the annual realized return for Amazon.com is 0%.
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The correct question is-
Amazon.com stock prices gave a realized return of 15%, 15%, -15%, and-15% over four successive quarters. for the year? What is the annual realized return for Amazon.com A. -445% B. -7.12%c. -5.12% D. 0%
