Your Total Return on an Investment Was -12% Over an Eight-Year

question 26

Multiple Choice

Your total return on an investment was -12% over an eight-year holding period. What was your annualized rate of return, rounded to the nearest tenth of a percent?

• A)-1.6%
• B)-9.84%
• C)-0.98%
• D)-1.5%

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Definitions:

Sell

The act of transferring ownership of a security or asset from a seller to a buyer in exchange for cash or other forms of payment.

Security

A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Dark Pools

Private financial forums or exchanges for trading securities not accessible by the investing public, often used by large institutions to avoid impacting the market with large orders.

Anonymity

The condition of being anonymous, where an individual's identity is unknown or concealed.