If the rate of return is positive, can percentage price change be negative?
If the rate of return is positive, can percentage price change be negative?
A large stock traded on Borsa Istanbul can realize a positive or a negative return independently on a given day. (Assume that every day there are many trades executed, so that the return is never zero.) A positive return means that the stock ended the day with a closing price increase, while a negative return means that the stock ended the day with a closing price decrease, compared to the previous trading day. Suppose that closing price increases and closing...
A project returned +40%, then –30%. Is the rate of return positive or negative? Show the formula to determine the solution.
The cross-price elasticity of coffee and tea is 0.6, where the percentage change in quantity is for coffee and the percentage change in price is measured for tea. If the price of tea increases by 6.0%, what will the percentage change in the quantity demanded of coffee (%AQ) be? Enter the response to one decimal place and enter a negative number if the quantity demanded decreases. %AQP for coffee: The cross-price elasticity of bows and violins is -0.3, where the...
19. hold(s) that, in general, only a higher positive return can offset any negative return. O A. Return asymmetries OB. The agency problem C. The rule of 72 D. Compounding
Which one of the following statements is correct concerning both the dollar return and the percentage return on a stock investment? A) Without the size of an investment, the dollar return has less value than the percentage return. B) The dollar return is more accurate than the percentage return because the dollar return includes dividend income while the percentage return does not. C) The dollar return considers the time value of money while the percentage return does not. D) Dollar...
The ratio of the percentage change in quantity demanded to the percentage change in price is known as the: A. cross elasticity of demand. B. demand minus side shift factor. C. income elasticity of demand. D. price elasticity of demand.
The price elasticity of demand is equal to the percentage change in price divided by the percentage change in quantity demanded the change in quantity demanded divided by the change in price. the value of the slope of the demand curve. the percentage change in quantity demanded divided by the percentage change in price If 20 units are sold at a price of US$50 and 30 units are sold at a price of US$40, what is the absolute value of...
According to the international Fisher effect (IFE): the nominal rate of return on a foreign investment should be equal to the nominal rate of return on the domestic investment. the exchange rate adjusted rate of return on a foreign investment should be equal to the interest rate on a local money market investment. the percentage change in the foreign spot exchange rate will be positive if the foreign interest rate is higher than the local interest rate. the percentage change...
Economic growth equals the percentage change in real GDP minus the a) percentage change in the price level and the federal budget deficit b)percentage change in the price level and the growth rate of the population c)percentage change in the price level d)growth rate of the population
What is the percentage change in the price of each of the three goods?b. Using a method similar to the consumer price index, compute the percentage change in the overall price level.c. If you were to learn that a bottle of Gatorade increased in size from 2011 to 2012, should that information affect your calculation of the inflation rate? If so,how?d. If you were to learn that Gatorade introduced new flavors in 2012, should that information affect your calculation of...