An Investment Increases in Value from $100 000 in January

question 33

Essay

An investment increases in value from $100 000 in January 2005 to $200 000 in January 2015.What is the effective rate of return?

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Definitions:

Equal Chance

The principle that everyone should have the same opportunity to succeed or participate without discrimination or bias.

Acceptable Assumptions

The premises that are considered reasonable and are accepted without requiring empirical evidence, often used as a foundational basis in arguments or theories.

Random Sampling

A method of selecting a sample from a population in such a way that each individual has an equal probability of being chosen, ensuring the representativeness of the sample.

Equal Chance

The principle that in a certain process, event, or situation, all outcomes or participants have the same probability or likelihood of occurring or being selected.