- Download the worksheet to save time writing
- Start solving the practice problems
- If you're stuck, watch the video solutions
- See your summary to get more insights
An investor receives \$250 in dividends, \$150 in interest, and the fair value of their investment decreases by \$50. What is the numerator of the Economic Return ratio?
How does the Economic Return ratio help investors make decisions?
An investor receives \$200 in dividends, \$100 in interest, and the fair value of their investment increases by \$300. What is the numerator of the Economic Return ratio?
Which of the following is NOT a component of the Economic Return from Investing?
An investor buys a stock for \$50, and by the end of the year, its price increases to \$70. How does this change affect the Economic Return from Investing?
What is the primary purpose of the Economic Return from Investing ratio?
An investor receives \$150 in dividends, \$50 in interest, and the fair value of their investment increases by \$200. If the initial investment was \$1000, what is the Economic Return from Investing percentage?
An investor receives \$400 in dividends, \$200 in interest, and the fair value of their investment increases by \$100. If the initial investment was \$2500, what is the Economic Return from Investing percentage?
What role do dividends play in the Economic Return from Investing?
Why is the fair value of the investment at the beginning of the period used as the denominator in the Economic Return ratio?