Consider a stock whose value increases across an 8-year period as shown in the table. Instructions: Round your answers to two decimal places. a. Calculate the percentage change in the value of the stock from year to year. Year Percent Change Stock Value $80.00 1 92.00 107.00 128.00 145.00 250.00 400.00 670.00 2 3 4 5 6 7 8 4 f $ V 4 3 b. Calculate the percentage change in the value of the stock across the entire 8-year period.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Consider a stock whose value increases across an 8-year period as shown in the table.
Instructions: Round your answers to two decimal places.
a. Calculate the percentage change in the value of the stock from year to year.
Percent Change
Year
1
2
3
4
5
6
7
8
Stock Value
$80.00
92.00
107.00
128.00
145.00
250.00
400.00
670.00
%
V
b. Calculate the percentage change in the value of the stock across the entire 8-year period.
c. Do you think this qualifies as a bubble?
&
%
4
V
N
%
O Yes, because the percentage change in the stock value is positive every year.
O No, because the percentage change in the stock value has not increased.
O Yes, because the percentage change in the stock value has increased greatly.
O No, because the percentage change in the stock value fluctuates up and down across the 8 years.
Transcribed Image Text:Consider a stock whose value increases across an 8-year period as shown in the table. Instructions: Round your answers to two decimal places. a. Calculate the percentage change in the value of the stock from year to year. Percent Change Year 1 2 3 4 5 6 7 8 Stock Value $80.00 92.00 107.00 128.00 145.00 250.00 400.00 670.00 % V b. Calculate the percentage change in the value of the stock across the entire 8-year period. c. Do you think this qualifies as a bubble? & % 4 V N % O Yes, because the percentage change in the stock value is positive every year. O No, because the percentage change in the stock value has not increased. O Yes, because the percentage change in the stock value has increased greatly. O No, because the percentage change in the stock value fluctuates up and down across the 8 years.
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