1. Suppose you buy a share of stock for $10 and sell it for $20; your profit is thus $10. If that happens within a year, your rate of return is an impressive 100%. If it takes five years, what would be the annual rate of return on your investment?

1. Suppose you buy a share of stock for $10 and sell it for $20; your profit is thus $10. If that happens within a year, your rate of return is an impressive 100%. If it takes five years, what would be the annual rate of return on your investment?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 12P

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1. Suppose you buy a share of stock for $10 and sell it for $20; your profit is thus
$10. If that happens within a year, your rate of return is an impressive 100%. If it
takes five years, what would be the annual rate of return on your investment?

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