The Internal Rate of Return Is the Average Annual Rate

question 126

True/False

The internal rate of return is the average annual rate of return from the investment.

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Definitions:

Intersection

The point or set of points where two or more geometric figures, lines, or paths cross each other.

Subjective Method

A method of assigning probabilities on the basis of judgment.

Probabilities

Measures of the likelihood that an event will occur, expressed as a number between 0 and 1.

Probability Values

Numerical values that represent the likelihood of the occurrence of a specific event or outcome.