Suppose that the value of an investment in the stock market has increased at an average compound

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Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1900. It is now 2019.

a. If your great-grandfather invested $1,000 in 1900, how much would that investment be worth today?

b. If an investment in 1900 has grown to $1 million, how much was invested in 1900?

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Fundamentals of Corporate Finance

ISBN: 978-1260566093

10th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Oct 25, 2019 06:53 AM

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Suppose that the value of an investment in the stock market has increased at an average compound

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Since we are assuming that it is currently 2019 119years have passed since 1900 a Future ...View the full answer

Fundamentals of Corporate Finance

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