1-year, 2-year, 3-year, and 4-year annualized rates of return are -3%, 7%, 28%, and 4%, respectively. Compute the implied two-year annualized interest rate from year 2 to year 4 (i.e. the annualized equivalent of r2,4)

Select one:

a. 1.08%

b. 2.44%

c. 2.36%

d. 3.12%