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CUET · MATHS · PYQ PAPER 2025

Which of the following statements are correct about the Compound Annual Growth Rate (CAGR)?
(A) It can be used to compare historical returns on different investment portfolios.
(B) It helps smooth returns when growth rates are expected to be volatile and inconsistent.
(C) It is unable to track the performance of various business measures of one or multiple companies alongside one another.
(D) It can be used to calculate the average growth of a single investment.
Choose the correct answer from the options given below :

  1. A (A), (B) and (D) only
  2. B (A), (B) and (C) only
  3. C (A), (C) and (D) only
  4. D (B) and (D) only
Verified Solution

Answer & Solution

Correct Answer

(A) (A), (B) and (D) only

Step-by-step Solution

Detailed explanation

(A), (B) and (D) only