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please help me calculate the annual interest rate. Thanks a lot! There are 3 investment funds launched at time 0. You are given that Fund
please help me calculate the annual interest rate. Thanks a lot!
There are 3 investment funds launched at time 0. You are given that Fund A earns compounded interest at an annual nominal interest rate 5% convertible continuously Fund B earns simple interest at an annual nominal interest rate 5.5% Fund C earns interest at an annual nominal discount rate 6% convertible semi-annually. (a) Which fund has a better performance during the first 30 months? Explain your answer. (b) A fund manager develops a new fund recently which 30% of the capital will be invested in Fund A, 30% of the capital will be invested in Fund B and 40% of the capital will be invested in Fund C. Calculate the annual effective interest rate of the fund during the period [0.5,2] (time is measured in years)Step by Step Solution
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