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What was the effective annual return on your investment

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Reference no: EM132145686

The next four questions are based on the following: You invested a lump sum of $50,000 in a new company ten years ago and left it there without any further investments and now, today, the company listed on the stock exchange (an initial public offering, IPO) and your investment is worth $575,000. Hint: The (rate of) return from today up to a period t (also called holding period return) is defined as return= (value at t/ value today)-1.

Given the above, what was the effective annual return on your investment?

Reference no: EM132145686

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