Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby's sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $10,351,500. Unfortunately for the previous owner, he had purchased it in 1998 at a price of $12,457,500. What was his annual rate of return on this sculpture? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby's sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $10,351,500. Unfortunately for the previous owner, he had purchased it in 1998 at a price of $12,457,500. What was his annual rate of return on this sculpture? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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
Section: Chapter Questions
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![Problem 5-14 Calculating Rates of Return [LO3]
Although appealing to more refined tastes, art as a collectible has not always
performed so profitably. During 2003, Sotheby's sold the Edgar Degas bronze
sculpture Petite Danseuse de Quatorze Ans at auction for a price of $10,351,500.
Unfortunately for the previous owner, he had purchased it in 1998 at a price of
$12,457,500. What was his annual rate of return on this sculpture? (A negative answer
should be indicated by a minus sign. Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7319943e-0226-435c-9f8f-a26046982475%2F5a43b141-a7ca-44f1-9040-023af90b1a2f%2F81ylj0m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 5-14 Calculating Rates of Return [LO3]
Although appealing to more refined tastes, art as a collectible has not always
performed so profitably. During 2003, Sotheby's sold the Edgar Degas bronze
sculpture Petite Danseuse de Quatorze Ans at auction for a price of $10,351,500.
Unfortunately for the previous owner, he had purchased it in 1998 at a price of
$12,457,500. What was his annual rate of return on this sculpture? (A negative answer
should be indicated by a minus sign. Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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