CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

Annualized returns ______

I. allow for comparison among different assets and over different time periods.
II. assume that money can be re-invested repeatedly while earning a similar return.
III. cannot be calculated when the holding period return is more than 10 years.
A. I, II and III
B. I and II
C. II and III
Explanation: II. One implicit assumption of annualizing return is that returns can be repeated precisely.
III. Yes, they can be calculated.

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