Question

11 years ago you purchased GDL stock for $26.0. Today, you sold the stock for $36.3. What is your annualized rate of return on this investment? Your answer must be in decimals (0.1000 is correct, NOT 10.00%). Round your answer to 4 decimals.

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Answer #1

AP = ((P + G) / P) ^ (1 / n) - 1

P = principal, or initial investment

G = gains or losses

n = number of years

AP = annualized performance rate

Annualized rate of return=((26+(36.3-26))/26)^(1/11)-1=3.0803%

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