I. 1) Suppose you buy one share of stock for $50 and sell it for $100. Your profit is $50. If that happens within a year, your rate of return is an impressive 100%! If it takes six years, what would be the average annual rate of return on your investment? As lo-5. 5o

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 12P
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1) Suppose you buy one share of stock for $50 and sell it for $100. Your profit is $50. If that
happens within a year, your rate of return is an impressive 100%! If it takes six years, what
would be the average annual rate of return on your investment?
Transcribed Image Text:1) Suppose you buy one share of stock for $50 and sell it for $100. Your profit is $50. If that happens within a year, your rate of return is an impressive 100%! If it takes six years, what would be the average annual rate of return on your investment?
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