Math Solutions

(See Steps) On the distant planet of Zurg, the stock market had a return last year of -60%. This year, due to an economic recovery, the stock market had

Question: On the distant planet of Zurg, the stock market had a return last year of -60%. This year, due to an economic recovery, the stock market had a return of +100%. What was an investor’s effective annual return over this two year period? If the investor requires an annual return of 10% to be happy, is the investor happy?

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