Four years ago, you bought a racehorse for $1,155,720. At the end of each year the horse produced $250,000 in winnings. Today, you sold the horse for $1,450,000. V your annual rate of return over the 4-year period? O 18% O 33.50% 25.99% N

Four years ago, you bought a racehorse for $1,155,720. At the end of each year the horse produced $250,000 in winnings. Today, you sold the horse for $1,450,000. V your annual rate of return over the 4-year period? O 18% O 33.50% 25.99% N

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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Question

Four years ago, you bought a racehorse for $1,155,720. At the end of each year the horse produced $250,000 in winnings. Today, you sold the horse for $1,450,000. What was
your annual rate of return over the 4-year period?
O 18%
33.50%
25.99%
O 26.45%
$7

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