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Problem:

Suppose it is now January 1, 2010, and you just sold an investment that you own for $12,500. You purchased the investment 4 years ago for $10,000. During the time you held the investment, it paid income equal to $1,000 each year.

Required:

Question: What is the 4-year holding period yield that you earned on your investment?

Note: Please explain comprehensively and give step by step solution.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91149331

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