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Options
- A
CAGR represents the average annual growth rate
- B
CAGR ignores timing of cash flows
- C
CAGR stands for Compounded Annual Growth Rate
-
All of the above
Correct answer
Why this is the answer
CAGR calculates the steady annual growth rate between the beginning and ending values of an investment over a period. It does not account for the timing or size of cash flows, making it useful for comparing overall growth rates.
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