Answer and explanation:
The Annual Rate of Return or Yearly Rate of Return is the amount of money obtained in the course of an investment over one year. It is usually defined as a percentage and takes into account capital appreciation and dividend payments. The formula for calculating the annual rate of return is:
Annual Rate of Return = (EYP - BYP)/BYP X 100%
Where:
EYP = End of year price
BYP = Beginning of year price
