Problem 5-14 Calculating Rates of Return [LO3]Although appealing to more refined tastes, art as a collectible has not alwaysperformed so profitably. During 2003, Sotheby's sold the Edgar Degas bronzesculpture 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 answershould be indicated by a minus sign. Do not round intermediate calculations andenter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Number of years (n) = 2003 - 1998 = 5Future Value (FV) in 2003 = $10,351,500Present Value (PV) in…

Answered: Although appealing to more refined…

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

Problem 1PS

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