1. A state pension fund has invested its money into equities, bonds and other investments....

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Finance

1. A state pension fund has invested its money into equities, bonds and other investments. Its alternative investment fund (hedge funds, private equity, real estate etc) has the following annual return results:

Year

2015

2016

2017

2018

2019

2020

Annual Return

4.77%

-17.79%

12.9%

22.89%

1.56%

12.43%

  1. What is the growth rate of the pension funds alternative investments?
  2. What is the annual growth rate of the investments? Show your calculations, you do not need to actually compute.

Hint: It may be helpful to consider an initial investment of $100.

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