You are at a dinner party and a friend of yours is bragging about his ability to make money in the stock market. He states that he started out with $10,000 five years ago and is already up 50%by buying and selling the right stocks at just the right time. You check the S&P 500 and note that it opened at 1845 five years ago and today it closed at 2774.

A. What is your friend's annual compounded return?_____________%

B. What is the S&P 500's annual compounded return? ____________%

C. Did your friend's stock picks perform better than the S&P 500? Yes or No?