Eileen just sold a stock and realized a 6.25 percent return for a 7-month holding period.What was her annualized rate of return?
A) 9.98 percent
B) 10.95 percent
C) 12.78 percent
D) 15.29 percent
E) 17.20 percent

Name: Eileen just sold a stock and realized a 6.25 percent return for a 7-month holding period.What was her annualized rate of return? A) 9.98 percent B) 10.95 percent C) 12.78 percent D) 15.29 percent E) 17.20 percent
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Question

Quizplus · Accepted Answer

1 + EAR = (1 + 0.0625)^{12 / 7} - 1 = 10.95 percent

Eileen Just Sold a Stock and Realized a 6