Measuring Investment Performance
This is the annualized rate of return. If you had just taken $284.20 and divided by $1,000, you would have found a return of 28.4% over a two year period. One half of this is 14.2% on an annualized basis but this overstates your return because it does not account for the compounding of interest. 4. Know what duration is and how to use it. ................
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