To determine the compounded annual rate of return on investments held for more than a year, investors typically use the present- value- based measure known as yield or
A) internal rate of return.
B) inflation- adjusted return.
C) simple return.
D) holding period return.

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is a present-value-based measure used to determine the compounded annual rate of return on investments held for more than a year.

To Determine the Compounded Annual Rate of Return on Investments