You invested $100 in a stock five years ago. Over the last five years, annual returns have been 15%, -8%, 12%, 18% and -11%. What is your arithmetic average annual rate of return?
You invested $100 in a stock five years ago. Over the last five years, annual returns have been 15%, -8%, 12%, 18% and -11%. What is your arithmetic average annual rate of return?
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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![You invested $100 in a stock five years ago. Over the last five years, annual returns
have been 15%, -8%, 12%, 18% and -11%.
What is your arithmetic average annual rate of return?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F831201ec-6e5d-4bd5-9fc0-68430e0f8983%2F6f752e5a-cb62-4ff3-aeb4-c6a735b1ef16%2Fqhutcpw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You invested $100 in a stock five years ago. Over the last five years, annual returns
have been 15%, -8%, 12%, 18% and -11%.
What is your arithmetic average annual rate of return?
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