Suppose the rates of return were 100% in the 1st year, -50% in the 2nd year.   If you had invested at the beginning of 1st year $1,000 and another $1,000 at the beginning of the   second year, what would have been the internal rate of return over the two-year span?

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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Suppose the rates of return were 100% in the 1st year, -50% in the 2nd year.

 

If you had invested at the beginning of 1st year $1,000 and another $1,000 at the beginning of the

 

second year, what would have been the internal rate of return over the two-year span?

 

Please show work in a spreadsheet and thank you!

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