A project returned +30%, then 30%. Thus, its arithmetic average rate of return was 0%. If you

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A project returned +30%, then −30%. Thus, its arithmetic average rate of return was 0%.

If you invested $25,000, how much did you end up with? Is your rate of return positive or negative? How would your overall rate of return have been different if you first earned

–30% and then +30%?

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Corporate Finance An Introduction

ISBN: 9780321277992

1st Edition

Authors: Ivo Welch

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Question Posted: Oct 25, 2024 08:00 AM

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A project returned +30%, then 30%. Thus, its arithmetic average rate of return was 0%. If you

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Corporate Finance An Introduction

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