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The Economic Rate of Return on an Asset Is Defined

Question 5

Multiple Choice

The economic rate of return on an asset is defined as


A) [(C1 + PV1 - PV0) ]/(PV0) .
B) [(C1 - (PV1 - PV0) ]/(PV0) .
C) [(C1 + PV1) ]/(PV0) .
D) [(C1 + PV0) ]/(PV1) .

Correct Answer:

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