Question
STOCKS There are two investments that have generated the following return in the last four years. Year Return (A) Return (B) 12 15% 30%
STOCKS There are two investments that have generated the following return in the last four years. Year Return (A) Return (B) 12 15% 30% 2 10% -20% 3 10% -10% 4 5% 40% Both have a return of 10% per year and thus an investor who invested $1.00 in A or $1.00 in B would have the same net ending wealth. Agree or disagree? What annualized rate of return would they earn if not 10%?
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