To determine the compounded annual rate of return on investments held for more than a year, investors typically use the present-value-based measure known as yield or
A) holding period return.
B) internal rate of return.
C) inflation-adjusted return.
D) simple return.

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is a present-value-based measure used to determine the compounded annual rate of return on investments held for more than a year.

To Determine the Compounded Annual Rate of Return on Investments