You are looking at an investment that has an effective annual rate of 14.3 percent. a. What is the effective semiannual return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the effective quarterly return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the effective monthly return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Respuesta :

Answer: The effective semiannual return is = 6,91 percent.

The effective quarterly return is= 3,40 percent.

The effective monthly return is = 1,12 percent.

Explanation:

The effective semiannual return is: [tex]( 1 + 0,143 ) ^{\frac{6}{12} } - 1 = 6,91[/tex] percent.

The effective quarterly return is: [tex]( 1 + 0,143 ) ^{\frac{3}{12} } - 1 = 3,40[/tex] percent.

The effective monthly return is: [tex]( 1 + 0,143 ) ^{\frac{1}{12} } - 1 = 1,12[/tex] percent.