Q 2.51. A project returned +30%, then -30%. Thus, its arithmetic average rate of return was 0%.
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Q 2.51. A project returned +30%, then -30%. Thus, its arithmetic average rate of return was 0%. If you invested $25,000, how much did you end up with? Is your rate of return positive or negative? How would your overall rate of return have been different if you first earned -30% and then +30%?
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