Problem
• An initial investment of $41,800 fifty years ago is worth $1,533,913 today. Determine the annual return on this investment.
• A stock was purchased for $45 a share and sold ten months later for $48 a share. If the shares were purchased totally with cash the holding period return would be ________ percent as compared to ________ percent if the purchase was made using 70 percent margin. Ignore trading costs and margin interest.