- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 1. Rates and Returns
- Subject 4. Annualized Return
CFA Practice Question
An investor invested $10,000 in an open-end mutual fund. 103 days later his investment is worth $10,372. What's his annualized rate of return?
B. 13.82%
C. 14.37%
A. 13.18%
B. 13.82%
C. 14.37%
Correct Answer: B
The rate of return is (10,372 - 10,000)/10,000 = 3.72%. The period is 103 days.
(1 + 0.0372)(365/103) -1 = 13.82%
User Contributed Comments 1
| User | Comment |
|---|---|
| walterli | or 10000x(1+?)^(103/356)= 10372 use calculator to get the yield |