If the price of a financial asset is $120 at the end of a period where no dividend was paid, what was the price at the beginning of the period if a 20 percent return was earned?

Question

Quizplus · Accepted Answer

If the price at the end of the period is $120 and a 20 percent return was earned, then the price at the beginning of the period would have been $100 (since $120 is 120 percent of the original price). Therefore, the correct answer is (C) $100.

If the Price of a Financial Asset Is $120 at the End