You are looking at an investment that has an effective annual rate of 12.8 percent. a. What is...

Free

80.2K

Verified Solution

Question

Finance

You are looking at an investment that has an effective annualrate of 12.8 percent.
a. What is the effective semiannual return? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
b.
What is the effective quarterly return? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
c. What is the effective monthly return? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)

Answer & Explanation Solved by verified expert

4.0 Ratings (772 Votes)

a.Effective semi-annual return= Effective annual return/ 2

= 12.8%/ 2

= 6.4%

b.Effective quarterly return= Effective annual return/4

= 12.8%/ 4

= 3.2%

c.Effective monthly return= Effective annual return/ 12

=12.8%/ 12

= 1.0667%

In case of any query, kindly comment on the solution.

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

You are looking at an investment that has an effective annualrate of 12.8 percent.a.What is the effective semiannual return? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)b.What is the effective quarterly return? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)c.What is the effective monthly return? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)

a.	What is the effective semiannual return? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
b.	What is the effective quarterly return? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
c.	What is the effective monthly return? (Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)