胡老师， 请教问题，谢谢。 return, annual, question, following

xieyingzi

Hi, 胡老师,

Please have a look at the following question, thanks!

The portfolio's annual time-weighted rate return is closest to:
  A .  8%
  B .  27%
  C .  32%
  D .  60%

Feedback：Correct answer： C .
Study Sesslon2-6.c The time - weighted rate of return is calculated by computing the quarterly holding period returns and linking those returns into annual return: 1.0909*0.9286*1.3333*0.9762=1.3185 1.3185-1=0.3185 or 31.85%.

I don't know how to get the annual retrun from quarterly return and  why "1.0909*0.9286*1.3333*0.9762=1.3185 1.3185-1=0.3185", and then 31.85% is the annual rate, please answer, thanks!