Suppose you buy a stock and hold it for two years. The rate of return...
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Suppose you buy a stock and hold it for two years. The rate of return for the first and second years are r_1 greaterthanorequalto - 1 and r_2 greaterthanorequalto - 1 respectively. Let r be the annualized internal rate of return for the investment and let r_q = 1/2 (r_1 + r_2) be the arithmetic average rate of return. Show that r lessthanorequalto t_0. When is r_0 = r
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