CUET Preparation Today
Which of the following is correct about the compound annual growth rate (CAGR)? |
CAGR is calculated by only the final value of an investment. CAGR is calculated by the final and beginning value of an investment. CAGR describes the effect of simple interest. CAGR is calculated by taking arthmetic mean of series of returns. |
CAGR is calculated by the final and beginning value of an investment. |
The correct answer is Option (2) → CAGR is calculated by the final and beginning value of an investment. ** CAGR compares the beginning value and the final value of an investment. Correct statement: CAGR is calculated by the final and beginning value of an investment. |
