A private equity fund was reported to have an IRR of 15% over its 10 year life span. You know that they made an acquisition when the fund started which they sold two years later for a gain of 30%. In the IRR calculation, what annualized reinvestment return was assumed on the proceeds of that sale until the end of the 10 year period?

		The same rate as they earned on thea acquired company during the period when they had it
		The average risk free rate for that time period of 2%
		The fund's internal rate of return of 15%.
		The S&P 500's return for that period of 6%