You buy a stock for $20. After a year the price rises to $25 but falls back

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You buy a stock for $20. After a year the price rises to $25 but falls back to $20 at the end of the second year. What was the average percentage return and what was the true annualized return?

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Investments An Introduction

ISBN: 978-0324561388

9th Edition

Authors: Herbert B Mayo

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Question Posted: Jun 26, 2012 05:04 AM

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You buy a stock for $20. After a year the price rises to $25 but falls back

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Since the beginning and closing prices are the same the return has ...View the full answer

Investments An Introduction

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