Use of Financial Calculator TI BA II Plus required. Which of the following nominal rates of return yields the highest effective annual return?
A) 8) 5 percent simple interest earned on a GIC
B) 8 percent compounded monthly on a dividend mutual fund
C) 8) 4 percent compounded semi-annually on a balanced mutual fund
D) 7) 5 percent compounded weekly on a Canadian equity fund
Correct Answer:
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