Please answer question 7.

b) What is the true annual rate of return? 7. You sold a security for $980 that you purchased five years before for $795. What was the HPR? Prove that this return overstates the annualized, compound return. 8. You invest $1,000 in a large company stock and $1,000 in a corporate bond. If you nercent on the bond and hold each security for