A Portfolio Earned 20%, 15%, -10%, 25%, and -5% in Five

question 322

Short Answer

A portfolio earned 20%, 15%, -10%, 25%, and -5% in five successive years. What was the portfolio's five-year equivalent annually compounded rate of return?

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Definitions:

Less

A comparative term indicating a smaller amount, degree, or extent of something.

Panic Disorder

A psychiatric disorder characterized by sudden episodes of intense fear or anxiety, often accompanied by physical symptoms.

Racing Heart

A physiological condition often associated with increased physical exertion, stress, or medical conditions, where the heart beats faster than normal.

Feeling Faint

A transient light-headedness or sensation of near loss of consciousness.