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1 An investor wants to use historic data to calculate a reasonable 'Required Rate of Return for his or her valuation calculations. The investor decides
1 An investor wants to use historic data to calculate a reasonable 'Required Rate of Return" for his or her valuation calculations. The investor decides to use historical data for the S&P 500 Index over the last 50 years. The dates used were 12/31/1968 through 12/31/2018. Download the file "SP 500 History", and find the closing value of the SP 500 on these two dates. Then, using what you learned in module 3, calculate the average annual compounding rate of growth for the S&P 500 over that time period. Closing Index value at 12/31/1968: Closing Index value at 12/31/2018: Number of years elapsed: Compounding Average Annual Growth Rate (from module 3): 103.86 2,506.85 50 1 An investor wants to use historic data to calculate a reasonable 'Required Rate of Return" for his or her valuation calculations. The investor decides to use historical data for the S&P 500 Index over the last 50 years. The dates used were 12/31/1968 through 12/31/2018. Download the file "SP 500 History", and find the closing value of the SP 500 on these two dates. Then, using what you learned in module 3, calculate the average annual compounding rate of growth for the S&P 500 over that time period. Closing Index value at 12/31/1968: Closing Index value at 12/31/2018: Number of years elapsed: Compounding Average Annual Growth Rate (from module 3): 103.86 2,506.85 50
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