n NISM Certifications
XV NISM Series XV
Medium

The Net Asset Value (NAV) of a mutual fund increases from Rs. 16 to Rs. 27 over two years. Calculate the compounded annual growth rate (CAGR) of the NAV.

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    21.58%

  2. B

    26.41%

  3. 29.88%

    Correct answer

  4. D

    31.85%

Why this is the answer

CAGR = [(27 ÷ 16)^(1/2)] – 1 = 29.88%.

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