Louis purchased $5,000 worth of stock three years ago and sold it today for $7,000- He received no dividends from this investment- Inflation averaged 4% during the three years he owned the stock- What was his annualized real rate of return on this investment?

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There are 4 main types of investments:
Shares. 
Property. ...
Cash.
Fixed interest.

Often, people take investment to be about buying and selling shares only. You buy a stock or bond, with the hope that its value will increase over time. Although investing comes with the risk of losing money, should a stock or bond decrease in value, it also has the potential for greater returns than you'd receive by putting your money in a bank account. Thus the common clubbing of investment and share investing.


Louis purchased $5,000 worth of stock three years ago and sold it today for $7,000- He received no dividends from this investment- Inflation averaged 4% during the three years he owned the stock- What was his annualized real rate of return on this investment?






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