Comparison of returns. Baker Baseball Cards Inc. originally purchased the rookie card Hammerin'Hank Aaron for $29.00. After holding the card for 7 years, Baker Baseball Cards auctioned off the card for $232.00. Another company, Bohenick Classis Automobiles restores and rebuilds old classic cars. This company purchase and restored a classic 1957 Thunderbird convertible 7 years ago for $9,300.00. Today at auction, the car sold for $102,300.00.
What is the holding period return (HPR) of the baseball card?
What is the holding period return (HPR) of the baseball car?
What is the simple annual return on the baseball card?
What is the simple annual return on the car?
What is the effective annual return (EAR) on the baseball card?
What is the effective annual return (EAR) on the car?