n NISM Certifications
X NISM Series X
Medium

Miss Naina invested Rs 10,000 and earned annual returns of 12%, 11%, and 8% over three years. What is her CAGR?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    9.51%

  2. B

    11.50%

  3. C

    9.88%

  4. 10.31%

    Correct answer

Why this is the answer

Final value = 10,000*(1.12)*(1.11)*(1.08)=13,426; CAGR = (13,426/10,000)^(1/3) - 1 ≈ 10.31%.

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