- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 6. Simulation Methods
- Subject 1. Lognormal Distribution and Continuously Compounding
CFA Practice Question
If the weekly return is 0.18%, the compound annual return is ______.
B. 9.57%
C. 9.8%
A. 9.36%
B. 9.57%
C. 9.8%
Correct Answer: C
(1 + 0.0018)52 - 1 = 9.8%
User Contributed Comments 3
| User | Comment |
|---|---|
| sarasyed5 | where does 52 come from? |
| jason1992 | 365/7=52 |
| ibrahim18 | @sarasyed5 52 is the number of weeks in a year since the return given is a weekly return |