What is the correct way to annualize an interest rate in financial decisions?
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The annualized rate is calculated by multiplying the change in rate of return in one month by 12 (or one quarter by four) to get the rate for the year. Annualized rate of return is computed on a time-weighted basis.
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The Annualized rate calculate by multiplying the change in rate of return in the one month by 12 ( or one quarter by four) to get the rate of the year . Annualized the rate of return is computet on a time - weighted basis .
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