CFA Practice Question

There are 294 practice questions for this study session.

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?

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
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