CUET · MATHS · PYQ PAPER 2025
Which of the following is correct about the compound annual growth rate?
- A It is an average annualized return of an investment.
- B It is calculated by taking the arithmetic mean of series of returns.
- C It is a linear measure that does not account for the effects of compounding.
- D It smoothens out the volatile nature of year by year growth/decay rates and provides more accurate results.
Answer & Solution
Correct Answer
(A) It is an average annualized return of an investment.
Step-by-step Solution
Detailed explanation
It is an average annualized return of an investment.
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