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e. CAGR (compound average expansion return). A funds Trader is actually interested in The web return gained 12 months just after 12 months, Therefore use of geometric is much more correct. Hence we might use geometric typical for risk free price and risk quality for each from the a few divisions, as supplied in exhibit 5 of your case.
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You've two methods to consider the Cash appreciation and depreciation in the assets. One way is the traditional and rational way. You evaluate the amount of modifications that have occurred on the market.
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