Compound annual rate question?
Guys, I came across a question today that I could not woek through, i would appreciate clarification, thanks.
An analysis observes the following four annual returns:
R1 = +10%, R2 = 15%, R3 = 0%, R4 = +5%
The equivalent compound annual rate is;
A; 5%
B; 0.5%
C; 0%
D: 7.4%
I came up with answer C 0% where as the correct ana=swer is B; 0.5%
I would be grateful for the workings on this one, many thanks. |
发表于 2013-4-14 18:32
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