n NISM Certifications
XVII NISM Series XVII
Medium

How is the Compounded Annual Growth Rate (CAGR) calculated, where 'n' is the holding period in years?

Practice question from NISM Series XVII- Retirement Adviser Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    (Return on Investment / Beginning Value of Investment)^n x 100

  2. B

    Total returns x 1/n

  3. C

    (End Value of Investment / Annualized return)^1/n

  4. ((End Value of Investment / Beginning Value of Investment)^1/n) - 1

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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