Your grandfather invested $1,000 in a stock 48 years ago. Currently the value of

Question

Your grandfather invested $1,000 in a stock 48 years ago. Currently the value of his account is $320,000. What is his geometric return over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

Your grandfather invested $1,000 in a stock 48 years ago. Currently the value of his account is $320,000. What is his geometric return over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

Explanation / Answer

Currnet value = invested amount * (1+ geometric return)^48

320000 = 1000 * (1+ geometric return)^48

ln(320) = 48*ln(1+geometric return)

geometric retun = 12.77%

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