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An Investor Has Earned 2%,12% and -10% on Equity Investments

Question 10

Multiple Choice

An investor has earned 2%,12% and -10% on equity investments in successive years (annually compounded) .This is equivalent to earning which of the following annually compounded rates for the three year period.


A) 1.33%
B) 1.23%
C) 1.13%
D) 0.93%

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