Formula of effective annual return is written as
A. (1+r) c - 1
B. (2+r) c - 2
C. (3+r) c - 3
D. (1+r) c - 5
Answer: Option A
Solution(By Examveda Team)
Formula of effective annual return is written as (1+r) c - 1. Effective annual return (EAR) is the annual rate that captures the magnifying effect of multiple compounding periods per year of an investment.This Question Belongs to Management >> International Finance And Treasury
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