A stock has the following returns: 2007: 25% 2008: -20% If the stocks price at the beginning
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Question:
A stock has the following returns: 2007: 25% 2008: -20%
If the stock’s price at the beginning of 2007 is $100, how much is it worth at the end of 2008?
What was the buy-and-hold return on this stock over the two years?
What was the average realized annual return?
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