- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 1. Rates and Returns
- Subject 4. Annualized Return
CFA Practice Question
An analyst obtains the following information for a mutual fund:
Return since inception: 18%
B. 10.44%
C. 10.1%
Time since inception: 20 months
Return since inception: 18%
What is the mutual fund's annualized rate of return?
A. 10.8%
B. 10.44%
C. 10.1%
Correct Answer: B
(1 + 0.18)12/20 - 1= 10.44%
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