Which of the following is NOT correct?

The correct answer is Option (4) → The actual rate of return can be calculated by adding the various expenses into the total money earned.

☀ Nominal rate of return: total money earned without considering expenses → Correct

☀ CAGR: calculated from final and beginning value → Correct

☀ CAGR describes effect of compounding → Correct

☀ Actual rate of return can be calculated by adding expenses into total money earned → Incorrect, it should account for **deducting** expenses, not adding