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Expected Rate of Return Formula Quiz

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Questions and Answers

What is the formula for the expected rate of return?

Expected Return = (Ending Value - Beginning Value) * Beginning Value

Expected Return = (Ending Value + Beginning Value + Dividends) / Beginning Value

Expected Return = (Ending Value - Beginning Value + Dividends) / Beginning Value (correct)

Expected Return = (Ending Value - Beginning Value) / Beginning Value

What does the 'Ending Value' represent in the expected rate of return formula?

The average value of the investment

The final value of the investment (correct)

The value of dividends received

The initial value of the investment

How are dividends considered in the expected rate of return formula?

Dividends are subtracted from the ending value and divided by the initial investment

Dividends are not considered in the formula

Dividends are added to the change in value and divided by the initial investment (correct)

Dividends are multiplied by the ending value and added to the initial investment

What is the formula for the expected rate of return?

Expected return = (Ending value - Beginning value) / Beginning value Signup and view all the answers

What does the expected rate of return formula take into account?

Both the beginning and ending value Signup and view all the answers

How is income factored into the expected rate of return formula?

Not directly factored into the formula Signup and view all the answers

Expected Rate of Return Formula Quiz

Choose a study mode

Podcast

Questions and Answers

What is the formula for the expected rate of return?

What does the 'Ending Value' represent in the expected rate of return formula?

How are dividends considered in the expected rate of return formula?

What is the formula for the expected rate of return?

What does the expected rate of return formula take into account?

How is income factored into the expected rate of return formula?

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