A one-year investment has quarterly returns of 2.0% in Q1, -15.6 % in Q2, 13.7% in Q3 and 9.1% in Q4. What is its total annual return (i.e., its compound annual growth rate or CAGR)? Give your answer in percent using two decimals (e.g., for 12.346% write 12.35).

A one-year investment has quarterly returns of 2.0% in Q1, -15.6 % in Q2, 13.7% in Q3 and 9.1% in Q4. What is its total annual return (i.e., its compound annual growth rate or CAGR)? Give your answer in percent using two decimals (e.g., for 12.346% write 12.35).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

9
A one-year investment has quarterly returns of 2.0% in Q1, -15.6% in Q2, 13.7% in
Q3 and 9.1% in Q4. What is its total annual return (i.e., its compound annual growth
rate or CAGR)? Give your answer in percent using two decimals (e.g., for 12.346%
write 12.35).

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