3) Let’s say that you invest $10,000 for 5 years and I tell you that over that time, the percentage change in your investment was 40%, while on a yearly basis, you investment grew by 7.5%. Which is the total return and which the annual return? Give a brie

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1)      Let’s say that you invest $10,000 for 5 years and I tell you that over that time, the percentage change in your investment was 40%, while on a yearly basis, you investment grew by 7.5%.

Which is the total return and which the annual return?

Give a brief definition of each.

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