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2. Consider the following information about the annual nominal returns of two investment funds. 2016 2017 Investment Fund A Investment Fund B 17.5% 2.0% -20.0%
2. Consider the following information about the annual nominal returns of two investment funds. 2016 2017 Investment Fund A Investment Fund B 17.5% 2.0% -20.0% 3.5% 12.6% 7.8% -15.4% -6.5% 15.0% 2.3% 2018 2019 2020 Which investment fund has offered higher nominal rate of return for an investor who entered the fund at the beginning of 2016 and exited the fund at the end of 2020 (i.e. which fund has achieved higher nominal rate of return over the five-year period considered)? Provide calculations for proof! Calculate both, the holding period (5 year) nominal rate of return and the annualized holding period nominal rate of return. (10 points)
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