# Fight Finance

#### CoursesTagsRandomAllRecentScores

 Scores keithphw $6,001.61 Jade$1,815.80 Chu $789.98 royal ne...$750.00 Leehy $713.33 JennyLI$625.61 Visitor $570.00 Visitor$550.00 Visitor $550.00 Visitor$540.00 ZOE HY $540.00 Yizhou$489.18 Visitor $464.70 Visitor$460.00 Jasper.sun $460.00 Visitor$460.00 Visitor $442.43 niki,zhang$380.00 Visitor $380.00 Visitor$380.00

Question 906  effective rate, return types, net discrete return, return distribution, price gains and returns over time

For an asset's price to double from say $1 to$2 in one year, what must its effective annual return be? Note that an effective annual return is also called a net discrete return per annum. If the price now is $P_0$ and the price in one year is $P_1$ then the effective annul return over the next year is:

$$r_\text{effective annual} = \dfrac{P_1 - P_0}{P_0} = \text{NDR}_\text{annual}$$

For an asset's price to double from say $1 to$2 in one year, what must its continuously compounded return $(r_{CC})$ be? If the price now is $P_0$ and the price in one year is $P_1$ then the continuously compounded return over the next year is:

$$r_\text{CC annual} = \ln{\left[ \dfrac{P_1}{P_0} \right]} = \text{LGDR}_\text{annual}$$

Question 908  effective rate, return types, gross discrete return, return distribution, price gains and returns over time

For an asset's price to double from say $1 to$2 in one year, what must its gross discrete return (GDR) be? If the price now is $P_0$ and the price in one year is $P_1$ then the gross discrete return over the next year is:

$$\text{GDR}_\text{annual} = \dfrac{P_1}{P_0}$$

A bank bill was bought for $99,000 and sold for$100,000 thirty (30) days later. There are 365 days in the year. Which of the following formulas gives the simple interest rate per annum over those 30 days?

Note: To help you identify which is the correct answer without doing any calculations yourself, the formulas used to calculate the numbers are given.