Compute the total and annual returns on the following investment. Fifteen years after purchasing shares in a
Question:
Compute the total and annual returns on the following investment.
Fifteen years after purchasing shares in a mutual fund for $6300, the shares are sold for $11,100.
The the total return is %.
(Do not round until the final answer. Then round to one decimal place as needed.)
B. Suppose a man invested $250 at the end of 1900 in each of three funds that tracked the averages of stocks, bonds, and cash, respectively. Assuming that his investments grew at the rates given in the table to the right, approximately how much would each investment have been worth at the end of 2010?
Category Average Annual Return
Stocks 6.2%
Bonds 2.2%
Cash 0.9%
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan