Another name for the effective annual rate is the
A) compound annual return.
B) nominal rate.
C) real rate.
D) holding period return.

Name: Another name for the effective annual rate is the A) compound annual return. B) nominal rate. C) real rate. D) holding period return.
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Question

Quizplus · Accepted Answer

The effective annual rate (EAR) is also known as the compound annual return, which reflects the interest rate on an investment or loan on an annual basis, taking into account the effect of compounding.

Another Name for the Effective Annual Rate Is the