From a simple inspection, it is possible for an investor to rank the four rates of return in each of parts (a) and (b)? If so, state the ranking. Give a brief explanation to justify your answer.
a) 4.0% compounded monthly, 4.1% compounded quarterly, 4.2% compounded semi-annually, 4.3% compounded annually.
b) 4.0% compounded annually, 4.1% compounded semi-annually, 4.2% compounded quarterly, 4.3% compounded monthly.

Question

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The Answer of From a simple inspection, it is possible for an investor to rank the four rates of return in each of parts (a) and (b)? If so, state the ranking. Give a brief explanation to justify your answer.
a) 4.0% compounded monthly, 4.1% compounded quarterly, 4.2% compounded semi-annually, 4.3% compounded annually.
b) 4.0% compounded annually, 4.1% compounded semi-annually, 4.2% compounded quarterly, 4.3% compounded monthly.

From a Simple Inspection, It Is Possible for an Investor