# 4A bank offers 6.00% on savings accounts. What is theeffective annual rate if interest is compounded semi-annually?SubmitAnswer format: Percentage Round to: 4 decimal places(Example: 9.2434%, % sign required. Will acceptdecimal format rounded to 6 decimal places (ex:0.092434))unanswerednot_submittedAttempts Remaining: Infinity

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A bank offers 6.00% on savings accounts. What is the effective annual rate if interest is compounded semi- annually?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22PROB

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Risk and return

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Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.

Question

# 4
A bank offers 6.00% on savings accounts. What is the
effective annual rate if interest is compounded semi-
annually?
Submit
Answer format: Percentage Round to: 4 decimal places
(Example: 9.2434%, % sign required. Will accept
decimal format rounded to 6 decimal places (ex:
0.092434))
unanswered
not_submitted
Attempts Remaining: Infinity

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