A Portfolio Earned 20%, -20%, 0%, 20%, and -20% in Five

question 194

Short Answer

A portfolio earned 20%, -20%, 0%, 20%, and -20% in five successive years. What was the portfolio's five-year equivalent annually compounded rate of return?

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Definitions:

Transmission

The process by which genetic or infectious agents are passed from one organism to another or from one part of the body to another.

Reducing Stressors

The process or practice of identifying, avoiding, or altering stress-inducing factors in one's life to decrease stress levels and improve well-being.

Health Psychology

Any application of psychological methods and theories to understand the origins of disease, individual responses to disease, and the dimensions and determinants of good health.

Tertiary Prevention

A type of prevention practised after suffering or disability from the disease is being experienced, with the goal of preventing further deterioration. See also primary prevention and secondary prevention.