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An Investor's Portfolio Increased in Value from $100,000 to $193,000

question 108

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An investor's portfolio increased in value from $100,000 to $193,000 over a seven-year period in which the Consumer Price Index rose from 95.6 to 115.3. What was the compound annual real rate of return on the portfolio during the period?


Definitions:

Unconditional Positive Regard

The practice of accepting and supporting someone without making judgments, a concept important in client-centered therapy.

ECT

Electroconvulsive Therapy, a medical procedure where seizures are electrically induced in patients to provide relief from mental disorders.

Biomedical Therapy

Treatments for psychological disorders that involve medical or physiological interventions, such as medication or surgery.

Depression

A psychiatric condition manifested by a lasting low spirit or a detachment from hobbies, severely disrupting routine life.

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