To Determine the Compounded Annual Rate of Return on Investments

question 19

Multiple Choice

To determine the compounded annual rate of return on investments held for more than a year, investors typically use the present- value- based measure known as yield or

• A) internal rate of return.
• B) inflation- adjusted return.
• C) simple return.
• D) holding period return.

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Definitions:

Federal Government

The national government of a federation, which has specific powers accorded to it by a constitution, distinct from regional governments.

World War II Veterans

Individuals who served in the military during World War II, contributing significantly to the Allied victory.

VA Mortgage Loans

A loan program established by the United States Department of Veterans Affairs to help veterans, service members, and their surviving spouses buy homes.

GI Bill of Rights

A law that provided a range of benefits for returning World War II veterans, including low-cost mortgages, low-interest loans to start a business, and tuition and living expenses for education.