Whitney receive on the investment

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Reference no: EM131807759

In 1990 Mrs. John Hay Whitney sold her painting by Renoir, Au Moulin de la Galette, depicting an open-air Parisian dance hall, for $71 million. The buyer also had to pay the auction house commission of 10%, or a total of $78.1 million. The Whitney family had purchased the painting in 1929 for $165,000.

(a) What rate of return did Mrs. Whitney receive on the investment?

(b) Was the rate of return really as high as you computed in (a)? Explain

Reference no: EM131807759

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