$10$ months ago you bought $102$ of ABC company at a price of $$12\mathrm{.}08$ per share. To

finance this, you borrowed $722$$ from a broker at an EAR of $4\mathrm{.}5\%.$ Today, you just

sold all the stock at a price of $$17\mathrm{.}74$ each and fully repaid your loan including the

interest owing. Knowing this, what is your ANNUALIZED rate of return on equity

$($ROE$)?$

$[$Hint: Recall that equity at any time is equal to the assets at that time less any

liabilities at that same time$]$

Note: Please give your answer in percent so that you write $"5"$ to represent $5\%($not

$0\mathrm{.}05)$

Answer: