Calculating rate of return assume that at the beginning of, Financial Management

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Calculating rate of return assume that at the beginning of

Calculating Rate of Return. Assume that at the beginning of the year, you purchase an investment for $8,000 that pays $100 annual income. Also assume the investment’s value has decreased to $7,400 by the end of the year.

a. What is the rate of return for this investment?

b. Is the rate of return a positive or negative number?

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