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-   -   How to find the return of a purchase after selling it (https://www.askmehelpdesk.com/showthread.php?t=461233)

  • Mar 29, 2010, 02:25 PM
    mcubed18
    How to find the return of a purchase after selling it
    A painting was bought for 3.52 million in 1989 and sold for 1.95 million in 1995. What is the return? Thank you for any help
  • Mar 30, 2010, 05:14 AM
    ArcSine
    The annual return is given by...



    ... where S, P, and n denote the sales proceeds, the original purchase amount, and the number of years the asset was held.

    Obviously in this case the return was < 0. To twist an old expression, I don't know art, but I know what a negative return looks like ;)

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