Your good friend Andrew told you that his grandmother just passed. As the family went through her belongings, they found a set of stock certificates for a company called Pecan Perfection. The company bakes the best pecan pies. His grandma bought the stock 45 years ago for $500. After some investigation, it was found that his grandma's original investment was now worth $399,742. What was the average annual return of Andrew's grandma's investment over the past 45 years? (Please answer with two decimal places and without the percent sign.)

Your good friend Andrew told you that his grandmother just passed. As the family went through her belongings, they found a set of stock certificates for a company called Pecan Perfection. The company bakes the best pecan pies. His grandma bought the stock 45 years ago for $500. After some investigation, it was found that his grandma's original investment was now worth $399,742. What was the average annual return of Andrew's grandma's investment over the past 45 years? (Please answer with two decimal places and without the percent sign.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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