n NISM Certifications
X NISM Series X
Medium

Salman invested Rs 1,00,000 and earned returns of 9%, 11%, and 13% over three years. His CAGR is approximately:

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    11.75%

  2. B

    33%

  3. C

    14.02%

  4. 10.98%

    Correct answer

Why this is the answer

Final value = 1,00,000*(1.09)*(1.11)*(1.13)=1,36,718; CAGR = (1,36,718/1,00,000)^(1/3) - 1 ≈ 10.98%.

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