Answer:
Line extension
Explanation:
Duncan Corp. is applying the strategy of diversifying an existing successful product line by introducing new variations of the product. This approach of adding variety to a existing product aiming to expand its customer base is known as line extension.
Given that <span>Patrick
graduated from college five years ago. He has set up an emergency fund
and has been paying off his student loans. In addition, he participates
in the retirement plan offered by his employer. He wants to invest $75
per month in very small companies (capitalization between $50 and $300
million or less).
He should purchase micro cap stocks.
</span>M<span>icrocap refers to the stock of public companies in the United States which have
a market capitalization of roughly $50 million to $300 million.</span>
Answer:
His annual rate of return on this sculpture is -4.46%.
Explanation:
let PV be the amount invested and after t periods it turns to be FV
FV = PV(1+r)^t
(1+r)^t = FV/PV
1 + r = (FV/PV)^(1/t)
r = (FV/PV)^(1/t) - 1
t is the number of years from 1999 to 2003, t = 2003 - 1999 = 4 years
FV = $10,311,500
PV = $12,377,500
r = ($10,311,500/$12,377,500)^(1/4) - 1
r = -0.0446
therefore, His annual rate of return on this sculpture is -4.46%.
