The price of a certain share went up by 2% in the first year and by...
The price of a certain share went up by 2% in the first year and by 5% in the second year. In the third year it remained unchanged and in the fourth year it dropped by 1%. Calculate the average annual return (as a percentage).
Homework Answers
Answer
the formula is:
i=the average annual return
r=rate of return in a given year n=1,2,3,4
N=sum of n years=total years=4
he average annual return (as a percentage) is 1.47%
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The price of a certain share went up by 2% in the first year and
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