What is the annual rate of return

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You buy a pharmaceutical company at the beginning of the year for $10/share, and estimate that the distribution of the end-of-year price is the following:

20%, $8.5/share

70%, $10.1/share

10%, $20/share

What is the annual expected return of this investment?

You buy a stock at $10, and 9 years later the stock is at $33. What is the annual rate of return that you realize on this investment over the holding period? (this is known as the 'compound annual growth rate')

Reference no: EM133260588

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