Problem
In 1990 Mrs. John Hay Whitney sold her painting by Renoir, Au Moulin de la Galette, depicting an open-air Parisian dance hall, for $71 million. The buyer also had to pay the auction house commission of 10%, or a total of $78.1 million. The Whitney family had purchased the painting in 1929 for $165,000.
(a) What rate of return did Mrs. Whitney receive on the investment?
(b) Was the rate of return really as high as you computed in (a)? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.