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You invested $2,000 in the stock market one year ago. Today, the investment is valued at...

You invested $2,000 in the stock market one year ago. Today, the investment is valued at $1,680.

What return did you earn? (Negative answer should be indicated by a minus sign.)

What return would you need to get next year to break even overall? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Answer #1

Calculating Return Rate for Year 1,

Return Rate = (1,680/2,000) - 1 = -16.00%

Required Rate in Year 2,

Required Rate = [2,000/1,680] - 1

Required Rate = 19.05%

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