Find the annualized holding rate of return and the average rate of return for a stock t

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter7: Valuation Of Stocks And Corporations
Section7.4: Valuing Common Stocks
Problem 3ST
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Find the annualized holding rate of return and the average rate of return for a stock that returned -30% in year 1 and
+30% in year 2. Annualized holding rate of return = -7.00%
A. -9.00%
B. -15.00%
C. 0.00%
Transcribed Image Text:Find the annualized holding rate of return and the average rate of return for a stock that returned -30% in year 1 and +30% in year 2. Annualized holding rate of return = -7.00% A. -9.00% B. -15.00% C. 0.00%
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