Answered: A. You invested $100 6 months ago.…

A. You invested $100 6 months ago. Today the value of your investment is $110. What is the CCR over 6 months? What is the annualized CCR? B. What is its gross rate of return (%) over the 6 months?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 9PROB

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Question

A. You invested $100 6 months ago. Today the value of your investment is $110. What is the CCR over 6 months? What is the annualized CCR?

B. What is its gross rate of return (%) over the 6 months?

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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