Although appealing to more refined tastes, art as a collectible has not always p

Question

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. Assume that in 2015, an auction house sold a statue at auction for a price of $10,584,500. Unfortunately for the previous owner, he had purchased it in 2008 at a price of $12,624,500. What was his annual rate of return on this sculpture? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places) Although appealing to more refined tastes, art as a collectible has not always performed so profitably. Assume that in 2015, an auction house sold a statue at auction for a price of $10,584,500. Unfortunately for the previous owner, he had purchased it in 2008 at a price of $12,624,500. What was his annual rate of return on this sculpture? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places) What was his annual rate of return on this sculpture? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places)

Explanation / Answer

Formula = ( Ending price/beginning price)1/n - 1

= (10584500/12624500)1/7 _ 1

= 0.11977271- 1

= -0.88022728

In percentage, -88.02 percentage

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