CFA CFA Level 1 Realized rate of return

Realized rate of return

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    • Avatar of mincemeat23mincemeat23
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        • CFA Level 1
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        Honestly, I’m not sure if you’re trolling at this point – your questions are a matter of working through the algebraic calculations. Anyways in the spirit of good community spirit:

        85.503075 = 127.015881 / [(1 + r)]^4

        [(1 + r)]^4 = 127.015881 / 85.503075

        [(1 + r)]^4 = 1.48551243332

        (1 + r) = (1.48551243332)^(1/4)

        (1 + r) = (1.48551243332)^(1/4)

        1 + r = 1.104

        r = 1.104 – 1

        r = 0.104

      • Avatar of cfastafcfastaf
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          • CFA Level 1
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          not a troll man i see where i went wrong, i didn’t do it to the power of 0.25 but rather 4. thanks much

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